SB 814: Household goods and services.
- Session Year: 2023-2024
- House: Senate
- Latest Version Date: 2023-10-08
Current Status:
Passed
(2023-10-08: Chaptered by Secretary of State. Chapter 508, Statutes of 2023.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
(1)Existing law, the Electronic and Appliance Repair Dealer Registration Law, establishes the Bureau of Household Goods and Services, under the direction of a chief who is responsible to the Director of Consumer Affairs, and provides for the licensure and regulation of, among others, electronic and appliance repair dealers and service contractors by the bureau. A violation of its provisions is a crime. Existing law repeals those provisions relating to service contractors on January 1, 2024.
This bill would extend operation of those provisions relating to service contractors until January 1, 2028. Because a violation of those provisions is a crime, the bill would impose a state-mandated local program.
Existing law prohibits acting as a service dealer without obtaining registration under the law and defines service dealer for this purpose to include, among other things, a person who for compensation repairs, services, or maintains an electronic set or major appliance. Existing law defines various terms for purposes of the law, including, among other things, electronic set, appliance, and video game.
This bill would amend the definition of electronic set to additionally include a cellular device or any other device that depends for its functioning on digital electronics, as specified. The bill would expand the definition of appliance to mean any device primarily used for residential purposes, including an ice maker, dehumidifier, and portable residential furnace. The bill would amend the definition of video game to remove the requirement that it has its own cathode ray tube, television set, or monitor. By expanding the definition of service dealer for purposes of the law, the violation of which is a crime, this bill would impose a state-mandated local program.
Existing law requires the director, on their own initiative, to conduct spot check investigations of service dealers of specified electronics and appliances throughout the state on a continuous basis.
This bill would require the director to conduct spot check investigations, as described above, no less than twice per year.
Existing law requires the director to distribute to each registered service dealer and each registered service contractor copies of these provisions and of the regulations adopted under these provisions.
This bill would authorize the director to, alternatively, make those provisions and regulations available on its internet website.
Under existing law, registration under the Electronic and Appliance Repair Dealer Registration Law expires no more than 12 months after the issue date. Existing law provides for the renewal of both unexpired and expired registrations, as specified.
This bill would authorize the bureau to impose conditions on the renewal of an expired registration of a service contractor. The bill would cancel a registration of a service contractor that has not been renewed within 6 years of its issuance and would authorize a holder of a canceled registration to submit a new application for reissuance or reinstatement of the registration if specified requirements are met.
(2)Existing law, the Home Furnishings and Thermal Insulation Act, prohibits any person from engaging in business regulated by the act unless they hold a valid, unexpired license, as specified. Existing law defines person for this purpose.
This bill would expand the definition of person to include a limited liability company and would make conforming changes.
Existing law imposes various labeling requirements, including requiring a manufacturer of a covered product to indicate whether or not the product contains added flame retardant chemicals by including a flame retardant chemical statement on the label, as specified. Existing law requires the manufacturer to retain documentation to show whether flame retardant chemicals were added to a product sold in California and to provide documentation upon request of the bureau establishing the accuracy of the flame retardant chemical statement on the label. Existing law imposes fines for a violation of those documentation requirements.
This bill would delete the above-described documentation requirements and would make conforming changes.
(3)Existing law, the Household Movers Act, provides for the licensure and regulation of household movers, including corporations and persons, as defined, by the Division of Household Movers established within the bureau.
This bill would add to the definition of corporation a limited liability company and would make conforming changes.
Existing law requires the bureau to issue a permit only to those applicants who it finds have demonstrated that they possess sufficient knowledge, ability, integrity, and financial resources and responsibility to perform the service within the scope of their application.
This bill would delete that requirement.
(4)Existing law subjects the powers and duties of the bureau to review by the appropriate policy committees of the Legislature and requires this review to be performed as if the laws administered by the bureau were scheduled to be repealed on January 1, 2024.
This bill would instead require this review to be performed as if those laws were scheduled to be repealed on January 1, 2028.
(5)Existing law, the Electronic and Appliance Repair Dealer Registration Law, establishes the Electronic and Appliance Repair Fund, and requires all fees collected pursuant to that law to be deposited in the fund and used for the administration of the bureau and the administration of that law. Existing law, the Home Furnishings and Thermal Insulation Act, establishes the Home Furnishings and Thermal Insulation Fund to be expended for the purposes of the bureau in carrying out the act. Existing law requires all fees collected under the act to be credited to the fund. Existing law, the Household Movers Act, establishes the Household Movers Fund to be used by the bureau for the administration of the act and requires all moneys collected pursuant to the act to be deposited into the fund.
This bill would establish the Household Goods and Services Fund within the Professions and Vocations Fund to be administered by the bureau for the purposes of administering the Electronic and Appliance Repair Dealer Registration Law, the Home Furnishings and Thermal Insulation Act, and the Household Movers Act. The bill would require all moneys collected pursuant to those laws to instead be deposited in the Household Goods and Services Fund and would require all moneys in the above-described funds to be transferred to the Household Goods and Services Fund by July 1, 2026. The bill would abolish the Electronic and Appliance Repair Fund, the Home Furnishings and Thermal Insulation Fund, and the Household Movers Fund on July 1, 2026.
(6)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(1)Existing law, the Electronic and Appliance Repair Dealer Registration Law, establishes the Bureau of Household Goods and Services, under the direction of a chief who is responsible to the Director of Consumer Affairs, and provides for the licensure and regulation of, among others, electronic and appliance repair dealers and service contractors by the bureau. A violation of its provisions is a crime. Existing law repeals those provisions relating to service contractors on January 1, 2024.
This bill would extend operation of those provisions relating to service contractors until January 1, 2028. Because a violation of those provisions is a crime, the bill would impose a state-mandated local program.
Existing law prohibits acting as a service dealer without obtaining registration under the law and defines service dealer for this purpose to include, among other things, a person who for compensation repairs, services, or maintains an electronic set or major appliance. Existing law defines various terms for purposes of the law, including, among other things, electronic set, appliance, and video game.
This bill would amend the definition of electronic set to additionally include a cellular device or any other device that depends for its functioning on digital electronics, as specified. The bill would expand the definition of appliance to mean any device primarily used for residential purposes, including an ice maker, dehumidifier, and portable residential furnace. The bill would amend the definition of video game to remove the requirement that it has its own cathode ray tube, television set, or monitor. By expanding the definition of service dealer for purposes of the law, the violation of which is a crime, this bill would impose a state-mandated local program.
Existing law requires the director, on their own initiative, to conduct spot check investigations of service dealers of specified electronics and appliances throughout the state on a continuous basis.
This bill would require the director to conduct spot check investigations, as described above, no less than twice per year.
Existing law requires the director to distribute to each registered service dealer and each registered service contractor copies of these provisions and of the regulations adopted under these provisions.
This bill would authorize the director to, alternatively, make those provisions and regulations available on its internet website.
Under existing law, registration under the Electronic and Appliance Repair Dealer Registration Law expires no more than 12 months after the issue date. Existing law provides for the renewal of both unexpired and expired registrations, as specified.
This bill would authorize the bureau to impose conditions on the renewal of an expired registration of a service contractor. The bill would cancel a registration of a service contractor that has not been renewed within 6 years of its issuance and would authorize a holder of a canceled registration to submit a new application for reissuance or reinstatement of the registration if specified requirements are met.
(2)Existing law, the Home Furnishings and Thermal Insulation Act, prohibits any person from engaging in business regulated by the act unless they hold a valid, unexpired license, as specified. Existing law defines person for this purpose.
This bill would expand the definition of person to include a limited liability company and would make conforming changes.
Existing law imposes various labeling requirements, including requiring a manufacturer of a covered product to indicate whether or not the product contains added flame retardant chemicals by including a flame retardant chemical statement on the label, as specified. Existing law requires the manufacturer to retain documentation to show whether flame retardant chemicals were added to a product sold in California and to provide documentation upon request of the bureau establishing the accuracy of the flame retardant chemical statement on the label. Existing law imposes fines for a violation of those documentation requirements.
This bill would delete the above-described documentation requirements and would make conforming changes.
(3)Existing law, the Household Movers Act, provides for the licensure and regulation of household movers, including corporations and persons, as defined, by the Division of Household Movers established within the bureau.
This bill would add to the definition of corporation a limited liability company and would make conforming changes.
Existing law requires the bureau to issue a permit only to those applicants who it finds have demonstrated that they possess sufficient knowledge, ability, integrity, and financial resources and responsibility to perform the service within the scope of their application.
This bill would delete that requirement.
(4)Existing law subjects the powers and duties of the bureau to review by the appropriate policy committees of the Legislature and requires this review to be performed as if the laws administered by the bureau were scheduled to be repealed on January 1, 2024.
This bill would instead require this review to be performed as if those laws were scheduled to be repealed on January 1, 2028.
(5)Existing law, the Electronic and Appliance Repair Dealer Registration Law, establishes the Electronic and Appliance Repair Fund, and requires all fees collected pursuant to that law to be deposited in the fund and used for the administration of the bureau and the administration of that law. Existing law, the Home Furnishings and Thermal Insulation Act, establishes the Home Furnishings and Thermal Insulation Fund to be expended for the purposes of the bureau in carrying out the act. Existing law requires all fees collected under the act to be credited to the fund. Existing law, the Household Movers Act, establishes the Household Movers Fund to be used by the bureau for the administration of the act and requires all moneys collected pursuant to the act to be deposited into the fund.
This bill would establish the Household Goods and Services Fund within the Professions and Vocations Fund to be administered by the bureau for the purposes of administering the Electronic and Appliance Repair Dealer Registration Law, the Home Furnishings and Thermal Insulation Act, and the Household Movers Act. The bill would require all moneys collected pursuant to those laws to instead be deposited in the Household Goods and Services Fund and would require all moneys in the above-described funds to be transferred to the Household Goods and Services Fund by July 1, 2026. The bill would abolish the Electronic and Appliance Repair Fund, the Home Furnishings and Thermal Insulation Fund, and the Household Movers Fund on July 1, 2026.
(6)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(1)Existing law, the Electronic and Appliance Repair Dealer Registration Law, establishes the Bureau of Household Goods and Services, under the direction of a chief who is responsible to the Director of Consumer Affairs, and provides for the licensure and regulation of, among others, electronic and appliance repair dealers and service contractors by the bureau. A violation of its provisions is a crime. Existing law repeals those provisions relating to service contractors on January 1, 2024.
This bill would extend operation of those provisions relating to service contractors until January 1, 2028. Because a violation of those provisions is a crime, the bill would impose a state-mandated local program.
Existing law prohibits acting as a service dealer without obtaining registration under the law and defines service dealer for this purpose to include, among other things, a person who for compensation repairs, services, or maintains an electronic set or major appliance. Existing law defines various terms for purposes of the law, including, among other things, electronic set, appliance, and video game.
This bill would amend the definition of electronic set to additionally include a cellular device or any other device that depends for its functioning on digital electronics, as specified. The bill would expand the definition of appliance to mean any device primarily used for residential purposes, including an ice maker, dehumidifier, and portable residential furnace. The bill would amend the definition of video game to remove the requirement that it has its own cathode ray tube, television set, or monitor. By expanding the definition of service dealer for purposes of the law, the violation of which is a crime, this bill would impose a state-mandated local program.
Existing law requires the director, on their own initiative, to conduct spot check investigations of service dealers of specified electronics and appliances throughout the state on a continuous basis.
This bill would require the director to conduct spot check investigations, as described above, no less than twice per year.
Existing law requires the director to distribute to each registered service dealer and each registered service contractor copies of these provisions and of the regulations adopted under these provisions.
This bill would authorize the director to, alternatively, make those provisions and regulations available on its internet website.
Under existing law, registration under the Electronic and Appliance Repair Dealer Registration Law expires no more than 12 months after the issue date. Existing law provides for the renewal of both unexpired and expired registrations, as specified.
This bill would authorize the bureau to impose conditions on the renewal of an expired registration of a service contractor. The bill would cancel a registration of a service contractor that has not been renewed within 6 years of its issuance and would authorize a holder of a canceled registration to submit a new application for reissuance or reinstatement of the registration if specified requirements are met.
(2)Existing law, the Home Furnishings and Thermal Insulation Act, prohibits any person from engaging in business regulated by the act unless they hold a valid, unexpired license, as specified. Existing law defines person for this purpose.
This bill would expand the definition of person to include a limited liability company and would make conforming changes.
Existing law imposes various labeling requirements, including requiring a manufacturer of a covered product to indicate whether or not the product contains added flame-retardant flame retardant chemicals by including a flame-retardant flame retardant chemical statement on the label, as specified. Existing law requires the manufacturer to retain documentation to show whether flame-retardant flame retardant chemicals were added to a product sold in California and to provide documentation upon request of the bureau establishing the accuracy of the flame-retardant flame retardant chemical statement on the label. Existing law imposes fines for a violation of those documentation requirements.
This bill would delete the above-described documentation requirements and would make conforming changes.
(3)Existing law, the Household Movers Act, provides for the licensure and regulation of household movers, including corporations and persons, as defined, by the Division of Household Movers established within the bureau.
This bill would add to the definition of corporation a limited liability company and would make conforming changes.
Existing law requires the bureau to issue a permit only to those applicants who it finds have demonstrated that they possess sufficient knowledge, ability, integrity, and financial resources and responsibility to perform the service within the scope of their application.
This bill would delete that requirement.
(4)Existing law subjects the powers and duties of the bureau to review by the appropriate policy committees of the Legislature and requires this review to be performed as if the laws administered by the bureau were scheduled to be repealed on January 1, 2024.
This bill would instead require this review to be performed as if those laws were scheduled to be repealed on January 1, 2028.
(5)Existing law, the Electronic and Appliance Repair Dealer Registration Law, establishes the Electronic and Appliance Repair Fund, and requires all fees collected pursuant to that law to be deposited in the fund and used for the administration of the bureau and the administration of that law. Existing law, the Home Furnishings and Thermal Insulation Act, establishes the Home Furnishings and Thermal Insulation Fund to be expended for the purposes of the bureau in carrying out the act. Existing law requires all fees collected under the act to be credited to the fund. Existing law, the Household Movers Act, establishes the Household Movers Fund to be used by the bureau for the administration of the act and requires all moneys collected pursuant to the act to be deposited into the fund.
This bill would establish the Household Goods and Services Fund within the Professions and Vocations Fund to be administered by the bureau for the purposes of administering the Electronic and Appliance Repair Dealer Registration Law, the Home Furnishings and Thermal Insulation Act, and the Household Movers Act. The bill would require all moneys collected pursuant to those laws to instead be deposited in the Household Goods and Services Fund and would require all moneys in the above-described funds as of July 1, 2024, to be transferred to the Household Goods and Services Fund on that date. by July 1, 2026. The bill would repeal abolish the Electronic and Appliance Repair Fund, the Home Furnishings and Thermal Insulation Fund, and the Household Movers Fund as of on July 1, 2024. 2026.
(6)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(1)Existing law, the Electronic and Appliance Repair Dealer Registration Law, establishes the Bureau of Household Goods and Services, under the direction of a chief who is responsible to the Director of Consumer Affairs, and provides for the licensure and regulation of, among others, electronic and appliance repair dealers and service contractors by the bureau. A violation of its provisions is a crime. Existing law repeals those provisions relating to service contractors on January 1, 2024.
This bill would extend operation of those provisions relating to service contractors until January 1, 2028. Because a violation of those provisions is a crime, the bill would impose a state-mandated local program.
Existing law prohibits acting as a service dealer without obtaining registration under the law and defines service dealer for this purpose to include, among other things, a person who for compensation repairs, services, or maintains an electronic set or major appliance. Existing law defines various terms for purposes of the law, including, among other things, electronic set, appliance, and video game.
This bill would amend the definition of electronic set to additionally include a cellular device or any other device that depends for its functioning on digital electronics, as specified. The bill would expand the definition of appliance to mean any device primarily used for residential purposes, including an ice maker, dehumidifier, and portable residential furnace. The bill would amend the definition of video game to remove the requirement that it has its own cathode ray tube, television set, or monitor. By expanding the definition of service dealer for purposes of the law, the violation of which is a crime, this bill would impose a state-mandated local program.
Existing law requires the director, on their own initiative, to conduct spot check investigations of service dealers of specified electronics and appliances throughout the state on a continuous basis.
This bill would require the director to conduct spot check investigations, as described above, no less than twice per year.
Existing law requires the director to distribute to each registered service dealer and each registered service contractor copies of these provisions and of the regulations adopted under these provisions.
This bill would authorize the director to, alternatively, make those provisions and regulations available on its internet website.
Under existing law, registration under the Electronic and Appliance Repair Dealer Registration Law expires no more than 12 months after the issue date. Existing law provides for the renewal of both unexpired and expired registrations, as specified.
This bill would authorize the bureau to impose conditions on the renewal of an expired registration of a service contractor. The bill would cancel a registration of a service contractor that has not been renewed within 6 years of its issuance and would authorize a holder of a canceled registration to submit a new application for reissuance or reinstatement of the registration if specified requirements are met.
(2)Existing law, the Home Furnishings and Thermal Insulation Act, prohibits any person from engaging in business regulated by the act unless they hold a valid, unexpired license, as specified. Existing law defines person for this purpose.
This bill would expand the definition of person to include a limited liability company and would make conforming changes.
Existing law imposes various labeling requirements, including requiring a manufacturer of a covered product to indicate whether or not the product contains added flame-retardant chemicals by including a flame-retardant chemical statement on the label, as specified. Existing law requires the manufacturer to retain documentation to show whether flame-retardant chemicals were added to a product sold in California and to provide documentation upon request of the bureau establishing the accuracy of the flame-retardant chemical statement on the label. Existing law imposes fines for a violation of those documentation requirements.
This bill would delete the above-described documentation requirements and would make conforming changes.
(2)(3)Existing law, the Household Movers Act, provides for the licensure and regulation of household movers movers, including corporations and persons, as defined, by the Division of Household Movers established within the bureau. Existing
This bill would add to the definition of corporation a limited liability company and would make conforming changes.
Existing law requires the bureau to issue a permit only to those applicants who it finds have demonstrated that they possess sufficient knowledge, ability, integrity, and financial resources and responsibility to perform the service within the scope of their application.
This bill would delete that requirement.
(3)(4)Existing law subjects the powers and duties of the bureau to review by the appropriate policy committees of the Legislature and requires this review to be performed as if the laws administered by the bureau were scheduled to be repealed on January 1, 2024.
This bill would instead require this review to be performed as if those laws were scheduled to be repealed on January 1, 2028.
(5)Existing law, the Electronic and Appliance Repair Dealer Registration Law, establishes the Electronic and Appliance Repair Fund, and requires all fees collected pursuant to that law to be deposited in the fund and used for the administration of the bureau and the administration of that law. Existing law, the Home Furnishings and Thermal Insulation Act, establishes the Home Furnishings and Thermal Insulation Fund to be expended for the purposes of the bureau in carrying out the act. Existing law requires all fees collected under the act to be credited to the fund. Existing law, the Household Movers Act, establishes the Household Movers Fund to be used by the bureau for the administration of the act and requires all moneys collected pursuant to the act to be deposited into the fund.
This bill would establish the Household Goods and Services Fund within the Professions and Vocations Fund to be administered by the bureau for the purposes of administering the Electronic and Appliance Repair Dealer Registration Law, the Home Furnishings and Thermal Insulation Act, and the Household Movers Act. The bill would require all moneys collected pursuant to those laws to instead be deposited in the Household Goods and Services Fund and would require all moneys in the above-described funds as of July 1, 2024, to be transferred to the Household Goods and Services Fund on that date. The bill would repeal the Electronic and Appliance Repair Fund, the Home Furnishings and Thermal Insulation Fund, and the Household Movers Fund as of July 1, 2024.
(4)(6)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(1)Existing law, the Electronic and Appliance Repair Dealer Registration Law, establishes the Bureau of Household Goods and Services, under the direction of a chief who is responsible to the Director of Consumer Affairs, and provides for the licensure and regulation of, among others, electronic and appliance repair dealers and service contractors by the bureau. Existing Existing law repeals those provisions relating to service contractors on January 1, 2024.
This bill would extend operation of those provisions relating to service contractors until January 1, 2028. Because a violation of those provisions is a crime, the bill would impose a state-mandated local program.
Existing law requires the director, on their own initiative, to conduct spot check investigations of service dealers of specified electronics and appliances throughout the state on a continuous basis.
This bill would require the director to conduct spot check investigations, as described above, no less than twice per year.
Existing law requires the director to distribute to each registered service dealer and each registered service contractor copies of these provisions and of the regulations adopted under these provisions.
This bill would authorize the director to, alternatively, make those provisions and regulations available on its internet website.
Under existing law, registration under the Electronic and Appliance Repair Dealer Registration Law expires no more than 12 months after the issue date. Existing law provides for the renewal of both unexpired and expired registrations, as specified.
This bill would authorize the bureau to impose conditions on the renewal of an expired registration of a service contractor. The bill would cancel a registration of a service contractor that has not been renewed within 6 years of its issuance and would authorize a holder of a canceled registration to submit a new application for reissuance or reinstatement of the registration if specified requirements are met.
(2)Existing law, the Household Movers Act, provides for the licensure and regulation of household movers by the Division of Household Movers established within the bureau. Existing law requires the bureau to issue a permit only to those applicants who it finds have demonstrated that they possess sufficient knowledge, ability, integrity, and financial resources and responsibility to perform the service within the scope of their application.
This bill would delete that requirement.
(3)Existing law subjects the powers and duties of the bureau to review by the appropriate policy committees of the Legislature and requires this review to be performed as if the laws administered by the bureau were scheduled to be repealed on January 1, 2024.
This bill would instead require this review to be performed as if those laws were scheduled to be repealed on January 1, 2028.
(4)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(1)Existing law, the Electronic and Appliance Repair Dealer Registration Law, establishes the Bureau of Household Goods and Services, under the direction of a chief who is responsible to the Director of Consumer Affairs, and provides for the licensure and regulation of, among others, electronic and appliance repair dealers by the bureau. Existing law requires the director, on their own initiative, to conduct spot check investigations of service dealers of specified electronics and appliances throughout the state on a continuous basis.
This bill would require the director to conduct spot check investigations, as described above, no less than twice per year.
Existing law requires the director to distribute to each registered service dealer and each registered service contractor copies of these provisions and of the regulations adopted under these provisions.
This bill would authorize the director to, alternatively, make those provisions and regulations available on its internet website.
Under existing law, registration under the Electronic and Appliance Repair Dealer Registration Law expires no more than 12 months after the issue date. Existing law provides for the renewal of both unexpired and expired registrations, as specified.
This bill would authorize the bureau to impose conditions on the renewal of an expired registration of a service contractor. The bill would cancel a registration of a service contractor that has not been renewed within 6 years of its issuance and would authorize a holder of a canceled registration to submit a new application for reissuance or reinstatement of the registration if specified requirements are met.
(2)Existing law, the Household Movers Act, provides for the licensure and regulation of household movers by the Division of Household Movers established within the bureau. Existing law requires the bureau to issue a permit only to those applicants who it finds have demonstrated that they possess sufficient knowledge, ability, integrity, and financial resources and responsibility to perform the service within the scope of their application.
This bill would delete that requirement.
Existing law establishes the Bureau of Household Goods and Services, under the direction of a chief who is responsible to the Director of Consumer Affairs, and provides for the licensure and regulation of, among others, electronic and appliance repair dealers by the bureau. Existing law requires the director, on their own initiative, to conduct spot check investigations of service dealers of specified electronics and appliances throughout the state on a continuous basis.
This bill would require the director to conduct spot check investigations, as described above, no less than twice per year.
Existing law requires the director to distribute to each registered service dealer and each registered service contractor copies of these provisions and of the regulations adopted under these provisions.
This bill would authorize the director to, alternatively, make those provisions and regulations available on its internet website.
(a)There is in the State Treasury the Professions and Vocations Fund. The fund shall consist of the following special funds:
(1)Accountancy Fund.
(2)California Architects Board Fund.
(3)Athletic Commission Fund.
(4)Barbering and Cosmetology Contingent Fund.
(5)Cemetery and Funeral Fund.
(6)Contractors License Fund.
(7)State Dentistry Fund.
(8)Home Furnishings and Thermal Insulation Fund.
(9)California Architects Board-Landscape Architects Fund.
(10)Contingent Fund of the Medical Board of California.
(11)Optometry Fund.
(12)Pharmacy Board Contingent Fund.
(13)Physical Therapy Fund.
(14)Private Security Services Fund.
(15)Professional Engineers, Land Surveyors, and Geologists Fund.
(16)Consumer Affairs Fund.
(17)Behavioral Sciences Fund.
(18)Licensed Midwifery Fund.
(19)Court Reporters Fund.
(20)Veterinary Medical Board Contingent Fund.
(21)Vocational Nursing and Psychiatric Technicians Fund.
(22)Electronic and Appliance Repair Fund.
(23)Acupuncture Fund.
(24)Physician Assistant Fund.
(25)Board of Podiatric Medicine Fund.
(26)Psychology Fund.
(27)Respiratory Care Fund.
(28)Speech-Language Pathology and Audiology and Hearing Aid Dispensers Fund.
(29)Board of Registered Nursing Fund.
(30)Animal Health Technician Examining Committee Fund.
(31)State Dental Hygiene Fund.
(32)Structural Pest Control Fund.
(33)Structural Pest Control Education and Enforcement Fund.
(34)Structural Pest Control Research Fund.
(35)Household Movers Fund.
(36)Household Goods and Services Fund.
(b)For accounting and recordkeeping purposes, the Professions and Vocations Fund shall be deemed to be a single special fund, and each of the several special funds therein shall constitute and be deemed to be a separate account in the Professions and Vocations Fund. Each account or fund shall be available for expenditure only for the purposes as are now or may hereafter be provided by law.
(c)This section shall remain in effect only until July 1, 2026, and as of that date is repealed.
SEC. 2.Section 205 is added to the Business and Professions Code, to read:205.(a)There is in the State Treasury the Professions and Vocations Fund. The fund shall consist of the following special funds:
(1)Accountancy Fund.
(2)California Architects Board Fund.
(3)Athletic Commission Fund.
(4)Barbering and Cosmetology Contingent Fund.
(5)Cemetery and Funeral Fund.
(6)Contractors License Fund.
(7)State Dentistry Fund.
(8)California Architects Board-Landscape Architects Fund.
(9)Contingent Fund of the Medical Board of California.
(10)Optometry Fund.
(11)Pharmacy Board Contingent Fund.
(12)Physical Therapy Fund.
(13)Private Security Services Fund.
(14)Professional Engineers, Land Surveyors, and Geologists Fund.
(15)Consumer Affairs Fund.
(16)Behavioral Sciences Fund.
(17)Licensed Midwifery Fund.
(18)Court Reporters Fund.
(19)Veterinary Medical Board Contingent Fund.
(20)Vocational Nursing and Psychiatric Technicians Fund.
(21)Acupuncture Fund.
(22)Physician Assistant Fund.
(23)Board of Podiatric Medicine Fund.
(24)Psychology Fund.
(25)Respiratory Care Fund.
(26)Speech-Language Pathology and Audiology and Hearing Aid Dispensers Fund.
(27)Board of Registered Nursing Fund.
(28)Animal Health Technician Examining Committee Fund.
(29)State Dental Hygiene Fund.
(30)Structural Pest Control Fund.
(31)Structural Pest Control Education and Enforcement Fund.
(32)Structural Pest Control Research Fund.
(33)Household Goods and Services Fund.
(b)For accounting and recordkeeping purposes, the Professions and Vocations Fund shall be deemed to be a single special fund, and each of the several special funds therein shall constitute and be deemed to be a separate account in the Professions and Vocations Fund. Each account or fund shall be available for expenditure only for the purposes as are now or may hereafter be provided by law.
(c)This section shall become operative on July 1, 2026.
SEC. 3.Section 9801 of the Business and Professions Code is amended to read:9801.The following terms as used in this chapter have the meaning expressed in this section:
(a)Person includes a firm, partnership, association, limited liability company, or corporation.
(b)Department means the Department of Consumer Affairs.
(c)Director means the Director of Consumer Affairs.
(d)Bureau means the Bureau of Household Goods and Services.
(e)Chief means the Chief of the Bureau of Household Goods and Services.
(f)Service dealer means a person who, for compensation, engages in, or holds themselves out to the public as offering services in the business of:
(1)Repairing, servicing, or maintaining an electronic set normally used or sold for personal, family, household, or home office use.
(2)Installing, repairing, servicing, or maintaining equipment or a burglar alarm system for use in private motor vehicles.
(3)Installing, repairing, servicing, or maintaining television or radio receiver antennas, rotators, and accessories or direct satellite signal receiving equipment located on or adjacent to a residence and not involving a function that is subject to and regulated under the provisions of Chapter 9 (commencing with Section 7000).
(4)Repairing, servicing, or maintaining major appliances.
(g)Equipment for the purposes of this chapter means an electronic set, appliance, antenna, rotator, and accessories.
(h)Electronic set includes, but is not limited to, any television, radio, audio or video recorder or playback equipment, video camera, video game, video monitor, computer system, cellular device, such as a telephone or tablet, photocopier, facsimile machine, or any other device that depends for its functioning, in whole or in part, on any digital electronic embedded or attached to the product and has a value over ten dollars ($10) and is normally used or sold for personal, family, household, or home office use.
(i)Appliance or major home appliance means any device primarily used for residential purposes, including, but not limited to, any refrigerator, freezer, range, microwave oven, washer, dryer, dishwasher, trash compactor, ice maker, dehumidifier, residential portable furnace, or room air-conditioner normally used or sold for personal, family, household, or home office use, or for use in private motor vehicles.
(j)Antenna includes, but is not limited to, a resonant device designed especially for the purpose of capturing electromagnetic energy transmitted by direct satellite or commercial radio or television broadcasting facilities. An antenna and its associated accessories are not deemed to be a part of a set and shall be considered, under this section, to be located outside or in the attic of a residence.
(k)Rotator, when used in connection with an antenna installation or repair, includes, but is not limited to, an electromechanical device operated from a remote location to rotate an antenna on a horizontal plane. A rotator and its associated accessories are not deemed to be a part of a set and shall be considered under this section, with the exception of the directional control unit, to be located outside or in the attic of a residence.
(l)Accessories, when used in connection with an antenna or rotator installation or repair, includes, but is not limited to, masts, towers, clamps, guy wires, eye hooks, standoff insulators, roof saddles, vent pipe mounts, chimney mount kits, signal amplifiers/boosters, multiset couplers, transmission lines, control cables, directional control units, and other devices as may be used from time to time to effect installation or repair.
(m)Computer system includes, but is not limited to, a central processing unit that performs data manipulation functions, and any associated peripheral devices, including, but not limited to, keyboards, display terminals, printers, or disk drives.
(n)Video game includes, but is not limited to, any electronic amusement device that utilizes a computer, microprocessor, or similar electronic circuitry.
(o)Direct satellite signal receiving equipment includes, but is not limited to, receivers, down converters, amplifiers, and audio or video processors related to the reception of audio, video, or data signals broadcasted or rebroadcasted by communication satellites located in space.
(p)Electronic repair industry means those activities defined in paragraph (1), (2), or (3) of subdivision (f).
(q)Appliance repair industry means those activities defined in paragraph (4) of subdivision (f).
SEC. 4.Section 9810 of the Business and Professions Code is amended to read:9810.(a)(1)There is in the Department of Consumer Affairs a Bureau of Household Goods and Services, under the supervision and control of the director. The director shall administer and enforce the provisions of this chapter and Chapter 3 (commencing with Section 19000) and Chapter 3.1 (commencing with Section 19225) of Division 8.
(2)There is a Division of Household Movers within the bureau for purposes of administering Chapter 3.1 (commencing with Section 19225) of Division 8. The Division of Household Movers shall be overseen by the chief of the bureau.
(b)The Governor shall appoint, subject to confirmation by the Senate, a chief of the bureau at a salary to be fixed and determined by the director with the approval of the Director of Finance. The chief shall serve under the direction and supervision of the director and at the pleasure of the Governor.
(c)Every power granted to or duty imposed upon the director under this chapter and Chapter 3 (commencing with Section 19000) and Chapter 3.1 (commencing with Section 19225) of Division 8 may be exercised or performed in the name of the director by a deputy or assistant director or by the chief, subject to conditions and limitations that the director may prescribe.
(d)Whenever the laws of this state refer to the Bureau of Electronic Repair Dealer Registration or the Bureau of Electronic and Appliance Repair, the reference shall be construed to be to the Bureau of Household Goods and Services.
(e)Notwithstanding any other law, the powers and duties of the Bureau of Household Goods and Services, as set forth in this chapter and Chapter 3 (commencing with Section 19000) and Chapter 3.1 (commencing with Section 19225) of Division 8, shall be subject to review by the appropriate policy committees of the Legislature. The review shall be performed as if this chapter and Chapter 3 (commencing with Section 19000) and Chapter 3.1 (commencing with Section 19225) of Division 8 were scheduled to be repealed on January 1, 2028.
SEC. 5.Section 9812 of the Business and Professions Code is amended to read:9812.The director shall gather evidence of violations of this chapter and of any regulation established hereunder, by any service dealer, whether registered or not, and by any employee, partner, officer, or member of any service dealer. The director shall, on their own initiative, conduct spot check investigations of service dealers throughout the state on a continuous basis, but no less than twice per year.
SEC. 6.Section 9812.5 of the Business and Professions Code is amended to read:9812.5.The director shall gather evidence of violations of this chapter and of any regulation established hereunder by any service contractor, whether registered or not, and by any employee, partner, officer, or member of any service contractor. The director shall, on their own initiative, conduct spot check investigations of service contractors throughout the state on a continuous basis.
This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 7.Section 9814 of the Business and Professions Code is amended to read:9814.The director may establish and enforce regulations as may be reasonable for the conduct of service dealers and for the general enforcement of the various provisions of this chapter in the protection of the public. The director may, by regulation, define the scope of the terms described in subdivisions (g) to (q), inclusive, of Section 9801 to include items of the same general nature or class as those enumerated therein. The director shall either make available on its internet website or distribute to each registered service dealer copies of this chapter and of the regulations thereunder. These regulations shall be adopted, amended, or repealed in accordance with the provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
SEC. 8.Section 9814.5 of the Business and Professions Code is amended to read:9814.5.The director may establish and enforce reasonable regulations for the conduct of service contractors, and for the general enforcement of the various provisions of this chapter in the protection of the public. The director shall either make available on its internet website or distribute to each registered service contractor copies of this chapter and of the regulations adopted under this chapter. Regulations shall be adopted, amended, or repealed in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
SEC. 9.Section 9830.5 of the Business and Professions Code is amended to read:9830.5.(a)Each service contractor shall pay the fee required by this chapter for each place of business operated by them in this state and shall register with the bureau upon forms prescribed by the director. The forms shall contain sufficient information to identify the service contractor, including name, address, retail sellers permit number, if a permit is required under the Sales and Use Tax Law (Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code), a copy of the certificate of qualification as filed with the Secretary of State if the service contractor is a foreign corporation, and other identifying data to be prescribed by the bureau. If the business is to be carried on under a fictitious name, that fictitious name shall be stated. If the service contractor is a partnership, identifying data shall be stated for each partner. If the service contractor is a private company that does not file an annual report on Form 10-K with the Securities and Exchange Commission, data shall be included for each of the officers and directors of the company as well as for the individual in charge of each place of the service contractors business in the State of California, subject to any regulations the director may adopt. If the service contractor is a publicly held corporation or a private company that files an annual report on Form 10-K with the Securities and Exchange Commission, it shall be sufficient for purposes of providing data for each of the officers and directors of the corporation or company to file with the director the most recent annual report on Form 10-K that is filed with the Securities and Exchange Commission.
(b)A service contractor who does not operate a place of business in this state but who sells, issues, or administers service contracts in this state, shall hold a valid registration issued by the bureau and shall pay the registration fee required by this chapter as if they had a place of business in this state.
(c)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 10.Section 9832.5 of the Business and Professions Code is amended to read:9832.5.(a)Registrations issued under this chapter shall expire no more than 12 months after the issue date. The expiration date of registrations shall be set by the director in a manner to best distribute renewal procedures throughout the year.
(b)To renew an unexpired registration, the service contractor shall, on or before the expiration date of the registration, apply for renewal on a form prescribed by the director, and pay the renewal fee prescribed by this chapter.
(c)To renew an expired registration, the service contractor shall apply for renewal on a form prescribed by the director, pay the renewal fee in effect on the last regular renewal date, and pay all accrued and unpaid delinquency and renewal fees. The bureau may impose conditions on a registration issued pursuant to this subdivision.
(d)Renewal is effective on the date that the application is filed, the renewal fee is paid, and all delinquency fees are paid.
(e)For purposes of implementing the distribution of the renewal of registrations throughout the year, the director may extend, by not more than six months, the date fixed by law for renewal of a registration, except that, in that event, any renewal fee that may be involved shall be prorated in such a manner that no person shall be required to pay a greater or lesser fee than would have been required had the change in renewal dates not occurred.
(f)A registration that is not renewed within six years of its expiration shall be canceled, but if the holder of the registration submits a new application and meets all of the following requirements, the registration may be reissued or reinstated:
(1)No fact, circumstance, or condition exists which would justify denial of registration under Section 480.
(2)The registrant pays all renewal, delinquency, and penalty fees that have accrued since the date on which the registration was last renewed.
(g)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 11.Section 9847.5 of the Business and Professions Code is amended to read:9847.5.(a)Each service contractor shall maintain those records as are required by the regulations adopted to carry out the provisions of this chapter for a period of at least three years. These records shall be open for reasonable inspection by the director or other law enforcement officials.
(b)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 12.Section 9849 of the Business and Professions Code, as amended by Section 81 of Chapter 625 of the Statutes of 2022, is amended to read:9849.(a)The expiration of a valid registration shall not deprive the director of jurisdiction to proceed with any investigation or hearing on a cease and desist order against a service dealer or service contractor or to render a decision to suspend, revoke, or place on probation a registration.
(b)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 13.Section 9849 of the Business and Professions Code, as amended by Section 82 of Chapter 625 of the Statutes of 2022, is amended to read:9849.(a)The expiration of a valid registration shall not deprive the director of jurisdiction to proceed with any investigation or hearing on a cease and desist order against a service dealer or to render a decision to suspend, revoke, or place on probation a registration.
(b)This section shall become operative on January 1, 2028.
SEC. 14.Section 9851 of the Business and Professions Code, as amended by Section 83 of Chapter 625 of the Statutes of 2022, is amended to read:9851.(a)The superior court in and for the county wherein any person carries on, or attempts to carry on, business as a service dealer or service contractor in violation of the provisions of this chapter, or any regulation thereunder, shall, on application of the director, issue an injunction or other appropriate order restraining that conduct.
(b)The proceedings under this section shall be governed by Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure, except that the director shall not be required to allege facts necessary to show or tending to show lack of an adequate remedy at law or irreparable injury.
(c)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 15.Section 9851 of the Business and Professions Code, as amended by Section 84 of Chapter 625 of the Statutes of 2022, is amended to read:9851.(a)The superior court in and for the county wherein any person carries on, or attempts to carry on, business as a service dealer in violation of the provisions of this chapter, or any regulation thereunder, shall, on application of the director, issue an injunction or other appropriate order restraining that conduct.
(b)The proceedings under this section shall be governed by Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure, except that the director shall not be required to allege facts necessary to show or tending to show lack of an adequate remedy at law or irreparable injury.
(c)This section shall become operative on January 1, 2028.
SEC. 16.Section 9853 of the Business and Professions Code, as amended by Section 85 of Chapter 625 of the Statutes of 2022, is amended to read:9853.(a)A plea or verdict of guilty or a conviction following a plea of nolo contendere made to a charge substantially related to the qualifications, functions, and duties of a service dealer or service contractor is deemed to be a conviction within the meaning of this article. The director may suspend, revoke, or place on probation a registration, or may deny registration, when the time for appeal has elapsed, or the judgment of conviction has been affirmed on appeal or when an order granting probation is made suspending the imposition of sentence, irrespective of a subsequent order under Section 1203.4 of the Penal Code, allowing that person to withdraw their plea of guilty and to enter a plea of not guilty, or setting aside the verdict of guilty, or dismissing the accusation, information, or indictment.
(b)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 17.Section 9853 of the Business and Professions Code, as amended by Section 86 of Chapter 625 of the Statutes of 2022, is amended to read:9853.(a)A plea or verdict of guilty or a conviction following a plea of nolo contendere made to a charge substantially related to the qualifications, functions, and duties of a service dealer is deemed to be a conviction within the meaning of this article. The director may suspend, revoke, or place on probation a registration, or may deny registration, when the time for appeal has elapsed, or the judgment of conviction has been affirmed on appeal or when an order granting probation is made suspending the imposition of sentence, irrespective of a subsequent order under Section 1203.4 of the Penal Code allowing that person to withdraw their plea of guilty and to enter a plea of not guilty, or setting aside the verdict of guilty, or dismissing the accusation, information, or indictment.
(b)This section shall become operative January 1, 2028.
SEC. 18.Section 9855 of the Business and Professions Code is amended to read:9855.The definitions used in this section shall govern the construction and terms as used in this chapter:
(a)Service contract means a contract in writing to perform, over a fixed period of time or for a specified duration, services relating to the maintenance, replacement, or repair of consumer goods and may include provisions for incidental payment of indemnity under limited circumstances, including, but not limited to, power surges, food spoilage, or accidental damage from handling. Service contract shall not include a contract in writing to maintain structural wiring associated with the delivery of cable, telephone, or other broadband communications services. Service contract shall not include a contract in which a consumer agrees to pay a provider of vision care services for a discount on optical products or contact lenses for a specified duration.
(b)Service contract administrator or administrator means a person who performs or arranges the collection, maintenance, or disbursement of moneys to compensate any party for claims or repairs pursuant to a service contract, and who also performs or arranges any of the following activities on behalf of service contract sellers:
(1)Providing service contract sellers with service contract forms.
(2)Participating in the adjustment of claims arising from service contracts.
(3)Arranging on behalf of service contract sellers the insurance required by Section 9855.2.
A service contract administrator shall not be an obligor on a service contract unless all service contracts under which the service contract administrator is obligated to perform are insured under a service contract reimbursement insurance policy.
(c)(1)Service contract seller or seller means a person who sells or offers to sell a service contract to a service contractholder, including a person who is the obligor under a service contract sold by the seller, manufacturer, or repairer of the product covered by the service contract.
(2)Service contract seller or seller also means a third party, including an obligor, who is not the seller, manufacturer, or repairer of the product. However, a third party shall not be an obligor on a service contract unless the obligor obtains a service contract reimbursement insurance policy for all service contracts under which the third party is obligated under the terms of a service contract.
(3)Service contract seller or seller shall not include the following:
(A)A bank or bank holding company, or the subsidiary or affiliate of either, or a financial institution, licensed under state or federal law, selling or offering to sell a service contract unless that entity is financially and legally obligated under the terms of a service contract.
(B)An electrical device manufacturer or electrical contractor who constructs, installs, or services electrical devices, which include any unit of an electrical system intended to carry electrical energy as part of a buildings electrical system, including raceways, conductors, invertors, conduit, wires, switches, or other similar devices.
(d)Service contractholder means a person who purchases or receives a service contract from a service contract seller.
(e)Service contractor means a service contract administrator or a service contract seller.
(f)Service contract reimbursement insurance policy means a policy of insurance issued by an insurer admitted to do business in this state providing coverage for all obligations and liabilities incurred by a service contract seller under the terms of the service contracts sold in this state by the service contract seller to a service contractholder. The service contract reimbursement insurance policy shall either cover all service contracts sold or specifically cover those contracts sold to residents of the State of California.
(g)Obligor is the entity financially and legally obligated under the terms of a service contract.
(h)Optical products means prescription and nonprescription eyewear. Optical products shall not include contact lenses of any kind.
(i)The terms manufacturer, retail seller, retailer, and sale shall have the same meanings ascribed to them in Section 1791 of the Civil Code.
(j)Consumer goods means any new or used product or part thereof that is used, bought, or leased for use primarily for personal, family, or household purposes, including assistive devices.
SEC. 19.Section 9855.9 of the Business and Professions Code is amended to read:9855.9.This article shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 20.Section 9860 of the Business and Professions Code, as amended by Section 88 of Chapter 625 of the Statutes of 2022, is amended to read:9860.(a)The director shall establish procedures for accepting complaints from the public against any service dealer or service contractor.
(b)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 21.Section 9860 of the Business and Professions Code, as amended by Section 89 of Chapter 625 of the Statutes of 2022, is amended to read:9860.(a)The director shall establish procedures for accepting complaints from the public against any service dealer.
(b)This section shall become operative on January 1, 2028.
SEC. 22.Section 9862.5 of the Business and Professions Code is amended to read:9862.5.(a)If a complaint indicates a possible violation of this chapter or of the regulations adopted pursuant to this chapter, the director may advise the service contractor of the contents of the complaint and, if the service contractor is so advised, the director shall make a summary investigation of the facts after the service contractor has had reasonable opportunity to reply thereto.
(b)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 23.Section 9863 of the Business and Professions Code, as amended by Section 91 of Chapter 625 of the Statutes of 2022, is amended to read:9863.(a)If, upon summary investigation, it appears probable to the director that a violation of this chapter, or the regulations thereunder, has occurred, the director, in their discretion, may suggest measures that in the directors judgment would compensate the complainant for the damages they suffered as a result of the alleged violation. If the service dealer or service contractor accepts the directors suggestions and performs accordingly, the director shall give that fact due consideration in any subsequent disciplinary proceeding. If the service dealer or service contractor declines to abide by the suggestions of the director, the director may investigate further and may institute disciplinary proceedings in accordance with the provisions of this chapter.
(b)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 24.Section 9863 of the Business and Professions Code, as amended by Section 92 of Chapter 625 of the Statutes of 2022, is amended to read:9863.(a)If, upon summary investigation, it appears probable to the director that a violation of this chapter, or the regulations thereunder, has occurred, the director, in their discretion, may suggest measures that in the directors judgment would compensate the complainant for the damages they suffered as a result of the alleged violation. If the service dealer accepts the directors suggestions and performs accordingly, the director shall give that fact due consideration in any subsequent disciplinary proceeding. If the service dealer declines to abide by the suggestions of the director, the director may investigate further and may institute disciplinary proceedings in accordance with the provisions of this chapter.
(b)This section shall become operative on January 1, 2028.
SEC. 25.Section 9870 of the Business and Professions Code is amended to read:9870.All fees collected pursuant to this chapter shall be paid into the State Treasury to the credit of the Household Goods and Services Fund, which fund is hereby created.
SEC. 26.Section 9871 of the Business and Professions Code is amended to read:9871.The director shall report to the State Controller at the beginning of each month, for the month preceding, the amount and source of all revenue received by the bureau pursuant to this chapter, and at that time shall pay the entire amount thereof into the State Treasury for credit to the Household Goods and Services Fund.
SEC. 27.Section 9872 of the Business and Professions Code is amended to read:9872.The money in the Household Goods and Services Fund necessary for the administration of the bureau and the administration of this chapter shall be used for those purposes.
SEC. 28.Section 9873 of the Business and Professions Code, as amended by Section 93 of Chapter 625 of the Statutes of 2022, is amended to read:9873.The fees prescribed by this chapter shall be set by the director by regulation, according to the following schedule:
(a)(1)The initial registration fee for an electronic repair industry service dealer or for an appliance repair industry service dealer is not more than two hundred five dollars ($205) for each place of business in this state. The initial registration fee for a service contractor is not more than ninety-five dollars ($95) for each place of business in this state.
(2)The initial registration fee for a person who engages in business as both an electronic repair industry service dealer and an appliance repair industry service dealer is not more than four hundred five dollars ($405) for each place of business in this state. The initial registration fee for a person who is a service contractor and engages in business as either an electronic repair industry service dealer or an appliance repair industry service dealer is not more than three hundred dollars ($300) for each place of business in this state.
(3)The initial registration fee for a person who engages in both the electronic repair industry and the appliance repair industry as a service dealer and is a service contractor is not more than five hundred dollars ($500) for each place of business in this state.
(4)A service dealer or service contractor who does not operate a place of business in this state, but engages in the electronic repair industry or the appliance repair industry, or sells, issues, or administers service contracts in this state, shall pay the registration fee specified herein as if that service dealer or service contractor had a place of business in this state.
(b)(1)The annual registration renewal fee for an electronic repair industry service dealer or for an appliance repair industry service dealer is not more than two hundred five dollars ($205) for each place of business in this state, if renewed prior to its expiration date. The annual registration renewal fee for a service contractor is ninety-five dollars ($95) for each place of business in this state, if renewed prior to its expiration date.
(2)The annual renewal fee for a service dealer who engages in the business as both an electronic repair industry service dealer and an appliance repair industry service dealer is not more than four hundred dollars ($400) for each place of business in this state.
(3)The annual renewal fee for a service dealer who engages in the electronic repair industry and the appliance repair industry and is a service contractor is not more than four hundred seventy-five dollars ($475) for each place of business in this state.
(4)A service dealer or service contractor who does not operate a place of business in this state, but who engages in the electronic repair industry or the appliance repair industry, or sells or issues service contracts in this state, shall pay the renewal fee specified herein as if that service dealer or service contractor had a place of business in this state.
(c)The delinquency fee is an amount equal to 50 percent of the renewal fee for a license in effect on the date of renewal of the license, except as otherwise provided in Section 163.5.
(d) This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 29.Section 9873 of the Business and Professions Code, as amended by Section 94 of Chapter 625 of the Statutes of 2022, is amended to read:9873.The fees prescribed by this chapter shall be set by the director by regulation, according to the following schedule:
(a)The initial registration fee for an electronic repair industry service dealer or for an appliance repair industry service dealer is not more than two hundred five dollars ($205) for each place of business in this state. The initial registration fee for a person who engages in business as both an electronic repair industry service dealer and an appliance repair industry service dealer is not more than four hundred five dollars ($405).
(b)The annual registration renewal fee for an electronic repair industry service dealer or for an appliance repair industry service dealer is not more than two hundred five dollars ($205) for each place of business in this state, if renewed prior to its expiration date. The annual renewal fee for a service dealer who engages in the business as both an electronic repair industry service dealer and an appliance repair industry service dealer is not more than four hundred dollars ($400).
(c)The delinquency fee is an amount equal to 50 percent of the renewal fee for a license in effect on the date of renewal of the license, except as otherwise provided in Section 163.5.
(d)This section shall become operative on January 1, 2028.
SEC. 30.Section 9874 of the Business and Professions Code is amended to read:9874.All salaries, expenses, or costs incurred or sustained pursuant to this chapter shall be payable only out of the Household Goods and Services Fund.
SEC. 31.Section 9874.5 is added to the Business and Professions Code, to read:9874.5.(a)All moneys in the Electronic and Appliance Repair Fund shall be transferred to the Household Goods and Services Fund by July 1, 2026. On July 1, 2026, the Electronic and Appliance Repair Fund shall be abolished.
(b)This section shall remain in effect only until December 31, 2026, and as of that date is repealed.
SEC. 32.Section 19002 of the Business and Professions Code is amended to read:19002.Person includes any individual, partnership, association, firm, auctioneer, trust, limited liability company, and corporation, and the agents, servants, and employees of any of them.
SEC. 33.Section 19063 of the Business and Professions Code is amended to read:19063.The bureau may refuse to issue any license provided for in this chapter to any individual:
(a)Who has had any license issued to them revoked, or whose license is under suspension, or who has failed to renew their license while it was under suspension.
(b)If any license of a partnership or limited liability company of which they are or were a member, or of a corporation of which they are or were an officer or director, or of a firm or association of which they are or were an officer or of which they are or were acting in a managerial capacity, has had any license issued to it revoked or suspended, and while acting as a member, officer, director, or in a managerial capacity they participated in any of the prohibited acts for which the license was revoked or suspended.
SEC. 34.Section 19064 of the Business and Professions Code is amended to read:19064.The bureau may refuse to issue any license provided for in this chapter to any partnership, corporation, limited liability company, firm, or association:
(a)Who has had any license issued to it revoked, or whose license is under suspension, or who has failed to renew its license while it was under suspension.
(b)If any member of the partnership, or any officer or director of the corporation, or any officer or person acting in a managerial capacity of the firm or association has had any license issued to them revoked, or whose license is under suspension, or who has failed to renew their license while it was under suspension.
(c)If any member of the limited liability company or of the partnership, or any officer or director of the corporation, or any officer or person acting in a managerial capacity of the firm or association, was either a member of any limited liability company or of any partnership, or an officer or director of any corporation, or an officer or person acting in a managerial capacity of any firm or association, whose license has been revoked, or whose license is under suspension, or who failed to renew a license while it was under suspension, and while acting as a member, officer, director, or person acting in a managerial capacity participated in any of the prohibited acts for which any license was revoked or suspended.
SEC. 35.Section 19094 of the Business and Professions Code is amended to read:19094.(a)For the purposes of this section, the following definitions shall apply:
(1)Component means the separate constituent parts of upholstered furniture sold in California, as identified in Technical Bulletin 117-2013, specifically cover fabrics, barrier materials, resilient filling materials, and decking materials.
(2)Covered products means any flexible polyurethane foam or upholstered or reupholstered furniture sold in California that is required to meet the test requirements set forth in Technical Bulletin 117-2013, entitled Requirements, Test Procedure and Apparatus for Testing the Smolder Resistance of Materials Used in Upholstered Furniture.
(3)Flame-retardant chemical means any chemical or chemical compound for which a functional use is to resist or inhibit the spread of fire. Flame retardant chemicals include, but are not limited to, halogenated, phosphorous-based, nitrogen-based, and nanoscale flame retardants, flame-retardant chemicals listed as designated chemicals pursuant to Section 105440 of the Health and Safety Code, and any chemical or chemical compound for which flame retardant appears on the substance Safety Data Sheet (SDS) pursuant to Section 1910.1200(g) of Title 29 of the Code of Federal Regulations.
(4)Chemical means either of the following:
(A)An organic or inorganic substance of a particular molecular identity, including any combination of those substances occurring, in whole or in part, as a result of a chemical reaction or occurring in nature, and any element, ion, or uncombined radical, and any degradate, metabolite, or reaction product of a substance with a particular molecular identity.
(B)A chemical ingredient, which means a substance comprising one or more substances described in subparagraph (A).
(5)Molecular identity means the substances properties listed below:
(A)Agglomeration state.
(B)Bulk density.
(C)Chemical composition, including surface coating.
(D)Crystal structure.
(E)Dispersability.
(F)Molecular structure.
(G)Particle density.
(H)Particle size, size distribution, and surface area.
(I)Physical form and shape, at room temperature and pressure.
(J)Physicochemical properties.
(K)Porosity.
(L)Solubility in water and biologically relevant fluids.
(M)Surface charge.
(N)Surface reactivity.
(6)Added flame retardant chemicals means flame-retardant chemicals that are present in any covered product or component thereof at levels above 1,000 parts per million.
(7)Department means the Department of Toxic Substances Control.
(8)Consumer Price Index means the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics.
(b)(1)A manufacturer of covered products shall indicate whether or not the product contains added flame retardant chemicals by including the following flame-retardant chemical statement on the label described in Section 1374.3 of Title 4 of the California Code of Regulations for covered products:
The upholstery materials in this product:
_____contain added flame retardant chemicals
_____contain NO added flame retardant chemicals
The State of California has updated the flammability standard and determined that the fire safety requirements for this product can be met without adding flame retardant chemicals. The state has identified many flame retardant chemicals as being known to, or strongly suspected of, adversely impacting human health or development.
A manufacturer of covered products shall indicate the absence or presence of added flame-retardant chemicals by placing an X in one of the appropriate blanks.
(2)This statement shall be included in the label described in Section 1374.3 of Title 4 of the California Code of Regulations in accordance with the bureaus regulations for that label. The statement need not be in all capital letters, and shall follow the statement required by Section 1374.3 of Title 4 of the California Code of Regulations.
(c)(1)The bureau shall ensure compliance with the labeling requirements in this section.
(2)(A)The bureau shall provide the Department of Toxic Substances Control with a selection of samples from covered products marked contain NO added flame retardant chemicals for testing for the presence of added flame retardant chemicals. The samples shall be from the components identified in paragraph (1) of subdivision (a). The bureau shall select samples based on consultation with the department, taking into account a range of manufacturers and types of covered products. The bureau and the department shall consult on the tests to be conducted by the department. The department shall provide the results of any completed test to the bureau. The bureau shall reimburse the department for the cost of testing for the presence of added flame retardant chemicals in covered products marked contain NO added flame retardant chemicals.
(B)No later than August 1 of each fiscal year, the bureau shall assess available resources and determine the number of tests to be conducted in the corresponding fiscal year, pursuant to this subparagraph.
(3)(A)If the departments testing shows that a covered product labeled as contain NO added flame retardant chemicals is mislabeled because it contains added flame-retardant chemicals, the bureau may assess fines for violations against manufacturers of the covered product and component manufacturers to be held jointly and severally liable for the violation.
(B)A fine for a violation of this subparagraph relating to mislabeling shall be assessed in accordance with the factors described in subdivision (d) and the following schedule:
(i)The fine for the first violation shall be not less than one thousand dollars ($1,000) but not more than two thousand five hundred dollars ($2,500).
(ii)The fine for the second violation shall be not less than two thousand five hundred dollars ($2,500) but not more than five thousand dollars ($5,000).
(iii)The fine for the third violation shall be not less than five thousand dollars ($5,000) but not more than seven thousand five hundred dollars ($7,500).
(iv)The fine for any subsequent violation shall be not less than seven thousand five hundred dollars ($7,500) but not more than ten thousand dollars ($10,000).
(C)The fines in paragraph (B) shall replace any other fines in this article for a violation of the testing requirements of this section. This clause does not alter or amend any other penalty otherwise imposed by this article.
(D)If the departments testing shows that a covered product labeled as contain NO added flame retardant chemicals is mislabeled because it contains added flame retardant chemicals, in addition to a fine or any other request, the bureau may request that the label required by subdivision (b) for covered products that belong to the same stock keeping unit (SKU) currently produced by the manufacturer be corrected to reflect that flame retardant chemicals are added to the covered product.
(E)If the departments testing shows that a covered product labeled as contain NO added flame retardant chemicals is mislabeled because it contains added flame retardant chemicals, in addition to a fine or any other request, the bureau may request additional testing of more products belonging to the same stock keeping unit (SKU) at the manufacturers expense to verify the accuracy of the label required by subdivision (b) for covered products if the manufacturer wishes to retain the contain NO added flame-retardant chemicals designation on the label required by subdivision (b).
(d)(1)The bureau shall make information about any citation issued pursuant to this section available to the public on its internet website.
(2)In determining the amount of the fine for violations of this section, the bureau shall consider the following factors:
(A)The nature and severity of the violation.
(B)The good or bad faith of the cited person.
(C)The history of previous violations.
(D)Evidence that the violation was willful.
(E)The extent to which the cited person or entity has cooperated with the bureau.
(3)(A)The bureau shall adjust all minimum and maximum fines imposed by this section for inflation every five years.
(B)The adjustment shall be equivalent to the percentage, if any, that the Consumer Price Index at the time of adjustment exceeds the Consumer Price Index at the time this section goes into effect. Any increase determined under this paragraph shall be rounded as follows:
(i)In multiples of ten dollars ($10) in the case of penalties less than or equal to one hundred dollars ($100).
(ii)In multiples of one hundred dollars ($100) in the case of penalties greater than one hundred dollars ($100) but less than or equal to one thousand dollars ($1,000).
(iii)In multiples of one thousand dollars ($1,000) in the case of penalties greater than one thousand dollars ($1,000).
(4)It shall be the duty of the bureau to receive complaints from consumers concerning covered products sold in California.
(e)The bureau may adopt regulations pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) to carry out this section.
SEC. 36.Section 19174 of the Business and Professions Code is amended to read:19174.All fees collected under this chapter shall be reported to the Controller and paid to the Treasurer and credited to the Household Goods and Services Fund, to be expended only for the purposes of the bureau and in carrying out this chapter.
SEC. 37.Section 19174.5 is added to the Business and Professions Code, to read:19174.5.(a)All moneys in the Home Furnishings and Thermal Insulation Fund shall be transferred to the Household Goods and Services Fund by July 1, 2026. On July 1, 2026, the Home Furnishing and Thermal Insulation Fund shall be abolished.
(b)This section shall remain in effect only until December 31, 2026, and as of that date is repealed.
SEC. 38.Section 19211 of the Business and Professions Code is amended to read:19211.Any person who has been denied a license, or who has had their license revoked, or whose license is under suspension, or who has failed to renew their license while it was under suspension, or any person who has been a member of any limited liability company or of any partnership, or an officer or director of any corporation, or an officer or person acting in a managerial capacity of any firm or association, whose license has been revoked, or whose license is under suspension, or who has failed to renew a license while it was under suspension, and while acting as a member, officer, director, or person acting in a managerial capacity, participated in any of the prohibited acts for which the license was suspended, or revoked, shall be prohibited from serving as a member of any licensed limited liability company or of any licensed partnership, or as an officer or director of any licensed corporation, or as an officer or person acting in a managerial capacity of any licensed firm or association, and the employment, election, or association of a person in this capacity by a licensee shall constitute grounds for disciplinary action against the licensee.
SEC. 39.Section 19212 of the Business and Professions Code is amended to read:19212.The performance by any partnership, limited liability company, corporation, firm, or association of any act or omission constituting a cause for disciplinary action, likewise constitutes a cause for disciplinary action against any licensee who is a member of that partnership or limited liability company, or an officer or director of that corporation, or an officer or person acting in a managerial capacity of that firm or association, if the licensee participated in the prohibited act or omission.
SEC. 40.Section 19214 of the Business and Professions Code is amended to read:19214.Any person who violates or proposes to violate any provision of this chapter relating to insulation standards may be enjoined by any court of competent jurisdiction. The court may make those orders or judgments, including the appointment of a receiver, as may be necessary to prevent the use or employment by any person of any practices which violate this chapter, or which may be necessary to restore to any person in interest any money or property, real or personal, which may have been acquired by means of any practice which violates any provision of this chapter.
Actions for injunction under this section may be prosecuted by the Attorney General or any district attorney, county counsel, city attorney, or city prosecutor in this state in the name of the people of the State of California upon their own motion or upon the complaint of any board, officer, person, corporation, association, partnership, limited liability company, or by any person acting for the interests of itself, its members, or the general public.
(a)A person who violates any provision of this chapter shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation, which shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the Attorney General or by any district attorney, county counsel, city attorney, or city prosecutor in any court of competent jurisdiction. The unit for a separate and distinct offense regarding insulation in violation of this chapter is each and every bag, bale, package, roll, or other container sold, offered for sale, or possessed with intent to sell or install contrary to the provisions of this chapter.
(b)If the action is brought by the Attorney General, one-half of the penalty collected shall be paid to the treasurer of the county in which the judgment was entered, and one-half to the Treasurer. If brought by a district attorney or county counsel, the entire amount of penalty collected shall be paid to the treasurer of the county in which the judgment was entered. If brought by a city attorney or city prosecutor, one-half of the penalty shall be paid to the treasurer of the county and one-half to the city.
(c)If the action is brought at the request of the bureau, the court shall determine the reasonable expenses incurred by the bureau in the investigation and prosecution of the action.
Before any penalty collected is paid out pursuant to subdivision (b), the amount of the reasonable expenses incurred by the bureau shall be paid to the Treasurer.
SEC. 41.Section 19225.5 of the Business and Professions Code is amended to read:19225.5.For purposes of this chapter, unless the context otherwise requires, the following provisions shall apply:
(a)Broker means a person engaged by others in the act of arranging, for compensation, the intrastate transportation of used household goods by a motor vehicle over the highways of this state for, or on behalf of, a shipper, a consignor, or a consignee.
(b)Bureau refers to the Bureau of Household Goods and Services, as established in Section 9810.
(c)Chief refers to the chief of the bureau.
(d)Corporation includes a corporation, a company, a limited liability company, an association, and a joint stock association.
(e)Department refers to the Department of Consumer Affairs.
(f)Director refers to the Director of Consumer Affairs.
(g)Fund means the Household Goods and Services Fund established pursuant to Section 9870.
(h)Household mover includes every corporation or person, their lessees, trustee, receivers, or trustees appointed by any court whatsoever, engaged in the permitted or unpermitted transportation for compensation or hire as a business by means of a motor vehicle or motor vehicles being used in the transportation of used household goods and personal effects over any public highway in this state. A broker, as defined in subdivision (a), shall be considered a household mover. The Legislature intends household mover to have the same meaning as household goods carrier in former Section 5109 of the Public Utilities Code, as that section read on June 30, 2018.
(i)Inspector refers to an inspector either employed by, or under contract to, the bureau.
(j)Motor vehicle means every motor truck, tractor, or other self-propelled vehicle used for transportation of property over the public highways, other than upon fixed rails or tracks, and any trailer, semitrailer, dolly, or other vehicle drawn thereby.
(k)Owner, with respect to a motor vehicle used in the transportation of property for compensation by a household mover, means the corporation or person who is registered with the Department of Motor Vehicles as the owner of the vehicle, or who has a legal right to possession of the vehicle pursuant to a lease or rental agreement.
(l)Person includes an individual, a firm, or a partnership.
(m)Public highway includes every public street, road, or highway in this state.
SEC. 42.Section 19229 of the Business and Professions Code is amended to read:19229.(a)Moneys in the fund shall be used, upon appropriation by the Legislature, by the bureau for the administration of this chapter.
(b)Except as otherwise provided in this chapter, all moneys, including fines or penalties imposed under this chapter, collected pursuant to this chapter shall be deposited into the fund.
SEC. 43.Section 19229.5 is added to the Business and Professions Code, to read:19229.5.(a)All moneys in the Household Movers Fund shall be transferred to the Household Goods and Services Fund by July 1, 2026. On July 1, 2026, the Household Movers Fund shall be abolished.
(b)This section shall remain in effect only until December 31, 2026, and as of that date is repealed.
SEC. 44.Section 19239 of the Business and Professions Code is amended to read:19239.(a)Before a permit is issued, the bureau shall require the applicant to establish ability and reasonable financial responsibility to initiate the proposed operations. The bureau shall require the applicant to establish their knowledge and ability to engage in business as a household mover by examination. The examination may be written or oral, or in the form of a demonstration of skill, or any combination of these, and any investigation of character, experience, and any tests of technical knowledge and manual skill that the bureau determines to be appropriate may be employed. In any examination, the qualification of the applicant shall be determined by an appraisal made by a member of the bureaus staff. The criteria used by the bureau staff in making the required appraisal to determine whether the applicant has met the qualifications shall be established by the bureau by rule or regulation, in accordance with the provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. An applicant who has been determined to be unqualified may establish their qualifications through a subsequent examination, but no subsequent examination shall be taken prior to 30 days from the date when the applicant was found to be unqualified. If the staff member determines that the applicant is not qualified and denies the application, the bureau shall notify the applicant in writing. Within 30 days of service of the notice, the applicant may file a written request with the bureau for a hearing on the denial. Upon receipt of a timely filed request, the bureau shall request that the matter be set for a hearing. The hearing shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director shall have all the powers granted therein. If the staff member determines that the applicant is qualified, the bureau may issue a permit without a hearing.
(b)An applicant may qualify in one of the following ways:
(1)If an individual, they may qualify by personal examination or by examination of their responsible managing employee.
(2)If a partnership or corporation, or any other type of business organization, it may qualify by examination of the responsible managing officer, an employee who works at least 32 hours per week, or a partner of the applicant firm.
(c)If the individual qualified by examination ceases to be connected with the permitholder, the permitholder shall notify the bureau in writing within 30 days after the cessation. If notice is given, the permit shall remain in force a reasonable length of time in order that another representative of the applicant may be qualified before the bureau. If the permitholder fails to notify the bureau of the cessation within a 30-day period, at the end of that period the permit shall be automatically suspended.
(d)Each applicant for a permit shall electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice for each owner, partner, officer, and director as a prerequisite to the issuance of a permit to operate as a household mover. The fingerprint images and related information shall be submitted for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and arrests, and information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on their own recognizance, pending trial or appeal.
(1)The Department of Justice shall provide a response to the bureau pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.
(2)The bureau shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.
(3)The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this subdivision.
(e)The bureau may require, as a precondition to the issuance of a permit, the procurement of a performance bond sufficient to facilitate the collection of fines, penalties, and restitution related to enforcement actions that can be taken against the applicant.
(f)The bureau may refuse to issue a permit if it is shown that an applicant or an officer, director, partner, or associate of an applicant has committed any act constituting dishonesty or fraud; committed any act that, if committed by a permitholder, would be grounds for a suspension or revocation of the permit; misrepresented any material fact on the application; or, was convicted of an offense that is substantially related to the qualifications, functions, or duties of the business or profession, except that if the bureau determines that the applicant is otherwise suitable to be issued a permit, and granting the permit would not compromise public safety, the bureau shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the applicant, and shall evaluate the suitability of the applicant to be issued a permit based on the evidence found through the review.
(g)A permit shall not be issued unless it has been shown that the applicant meets one of the following residence requirements:
(1)For an individual, the applicant shall have resided in the State of California for not less than 90 days next preceding the filing of the application.
(2)For a partnership, the partner having the largest percentage interest in the partnership shall have resided in the State of California continuously for not less than 90 days next preceding the filing of the application.
(3)For a limited liability company or a corporation, the applicant shall be a domestic limited liability company or a domestic corporation or shall be qualified to transact business in the State of California as a foreign limited liability company or a foreign corporation at the time of filing the application.
(h)The bureau shall prescribe, amend, and repeal rules in accordance with law for the administration of this section.
(i)If the bureau denies an application, the bureau shall notify the applicant in writing. Within 30 days of service of the notice, the applicant may file a written request with the bureau for a hearing on the denial. Upon receipt of a timely filed request, the bureau shall request that the matter be set for hearing. The hearing shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director shall have all the powers granted therein.
SEC. 45.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)There is in the State Treasury the Professions and Vocations Fund. The fund shall consist of the following special funds:
(1)Accountancy Fund.
(2)California Architects Board Fund.
(3)Athletic Commission Fund.
(4)Barbering and Cosmetology Contingent Fund.
(5)Cemetery and Funeral Fund.
(6)Contractors License Fund.
(7)State Dentistry Fund.
(8)Home Furnishings and Thermal Insulation Fund.
(9)California Architects Board-Landscape Architects Fund.
(10)Contingent Fund of the Medical Board of California.
(11)Optometry Fund.
(12)Pharmacy Board Contingent Fund.
(13)Physical Therapy Fund.
(14)Private Security Services Fund.
(15)Professional Engineers, Land Surveyors, and Geologists Fund.
(16)Consumer Affairs Fund.
(17)Behavioral Sciences Fund.
(18)Licensed Midwifery Fund.
(19)Court Reporters Fund.
(20)Veterinary Medical Board Contingent Fund.
(21)Vocational Nursing and Psychiatric Technicians Fund.
(22)Electronic and Appliance Repair Fund.
(23)Acupuncture Fund.
(24)Physician Assistant Fund.
(25)Board of Podiatric Medicine Fund.
(26)Psychology Fund.
(27)Respiratory Care Fund.
(28)Speech-Language Pathology and Audiology and Hearing Aid Dispensers Fund.
(29)Board of Registered Nursing Fund.
(30)Animal Health Technician Examining Committee Fund.
(31)State Dental Hygiene Fund.
(32)Structural Pest Control Fund.
(33)Structural Pest Control Education and Enforcement Fund.
(34)Structural Pest Control Research Fund.
(35)Household Movers Fund.
(36)Household Goods and Services Fund.
(b)For accounting and recordkeeping purposes, the Professions and Vocations Fund shall be deemed to be a single special fund, and each of the several special funds therein shall constitute and be deemed to be a separate account in the Professions and Vocations Fund. Each account or fund shall be available for expenditure only for the purposes as are now or may hereafter be provided by law.
(c)This section shall remain in effect only until July 1, 2026, and as of that date is repealed.
SEC. 2.Section 205 is added to the Business and Professions Code, to read:205.(a)There is in the State Treasury the Professions and Vocations Fund. The fund shall consist of the following special funds:
(1)Accountancy Fund.
(2)California Architects Board Fund.
(3)Athletic Commission Fund.
(4)Barbering and Cosmetology Contingent Fund.
(5)Cemetery and Funeral Fund.
(6)Contractors License Fund.
(7)State Dentistry Fund.
(8)California Architects Board-Landscape Architects Fund.
(9)Contingent Fund of the Medical Board of California.
(10)Optometry Fund.
(11)Pharmacy Board Contingent Fund.
(12)Physical Therapy Fund.
(13)Private Security Services Fund.
(14)Professional Engineers, Land Surveyors, and Geologists Fund.
(15)Consumer Affairs Fund.
(16)Behavioral Sciences Fund.
(17)Licensed Midwifery Fund.
(18)Court Reporters Fund.
(19)Veterinary Medical Board Contingent Fund.
(20)Vocational Nursing and Psychiatric Technicians Fund.
(21)Acupuncture Fund.
(22)Physician Assistant Fund.
(23)Board of Podiatric Medicine Fund.
(24)Psychology Fund.
(25)Respiratory Care Fund.
(26)Speech-Language Pathology and Audiology and Hearing Aid Dispensers Fund.
(27)Board of Registered Nursing Fund.
(28)Animal Health Technician Examining Committee Fund.
(29)State Dental Hygiene Fund.
(30)Structural Pest Control Fund.
(31)Structural Pest Control Education and Enforcement Fund.
(32)Structural Pest Control Research Fund.
(33)Household Goods and Services Fund.
(b)For accounting and recordkeeping purposes, the Professions and Vocations Fund shall be deemed to be a single special fund, and each of the several special funds therein shall constitute and be deemed to be a separate account in the Professions and Vocations Fund. Each account or fund shall be available for expenditure only for the purposes as are now or may hereafter be provided by law.
(c)This section shall become operative on July 1, 2026.
SEC. 3.Section 9801 of the Business and Professions Code is amended to read:9801.The following terms as used in this chapter have the meaning expressed in this section:
(a)Person includes a firm, partnership, association, limited liability company, or corporation.
(b)Department means the Department of Consumer Affairs.
(c)Director means the Director of Consumer Affairs.
(d)Bureau means the Bureau of Household Goods and Services.
(e)Chief means the Chief of the Bureau of Household Goods and Services.
(f)Service dealer means a person who, for compensation, engages in, or holds themselves out to the public as offering services in the business of:
(1)Repairing, servicing, or maintaining an electronic set normally used or sold for personal, family, household, or home office use.
(2)Installing, repairing, servicing, or maintaining equipment or a burglar alarm system for use in private motor vehicles.
(3)Installing, repairing, servicing, or maintaining television or radio receiver antennas, rotators, and accessories or direct satellite signal receiving equipment located on or adjacent to a residence and not involving a function that is subject to and regulated under the provisions of Chapter 9 (commencing with Section 7000).
(4)Repairing, servicing, or maintaining major appliances.
(g)Equipment for the purposes of this chapter means an electronic set, appliance, antenna, rotator, and accessories.
(h)Electronic set includes, but is not limited to, any television, radio, audio or video recorder or playback equipment, video camera, video game, video monitor, computer system, cellular device, such as a telephone or tablet, photocopier, facsimile machine, or any other device that depends for its functioning, in whole or in part, on any digital electronic embedded or attached to the product and has a value over ten dollars ($10) and is normally used or sold for personal, family, household, or home office use.
(i)Appliance or major home appliance means any device primarily used for residential purposes, including, but not limited to, any refrigerator, freezer, range, microwave oven, washer, dryer, dishwasher, trash compactor, ice maker, dehumidifier, residential portable furnace, or room air-conditioner normally used or sold for personal, family, household, or home office use, or for use in private motor vehicles.
(j)Antenna includes, but is not limited to, a resonant device designed especially for the purpose of capturing electromagnetic energy transmitted by direct satellite or commercial radio or television broadcasting facilities. An antenna and its associated accessories are not deemed to be a part of a set and shall be considered, under this section, to be located outside or in the attic of a residence.
(k)Rotator, when used in connection with an antenna installation or repair, includes, but is not limited to, an electromechanical device operated from a remote location to rotate an antenna on a horizontal plane. A rotator and its associated accessories are not deemed to be a part of a set and shall be considered under this section, with the exception of the directional control unit, to be located outside or in the attic of a residence.
(l)Accessories, when used in connection with an antenna or rotator installation or repair, includes, but is not limited to, masts, towers, clamps, guy wires, eye hooks, standoff insulators, roof saddles, vent pipe mounts, chimney mount kits, signal amplifiers/boosters, multiset couplers, transmission lines, control cables, directional control units, and other devices as may be used from time to time to effect installation or repair.
(m)Computer system includes, but is not limited to, a central processing unit that performs data manipulation functions, and any associated peripheral devices, including, but not limited to, keyboards, display terminals, printers, or disk drives.
(n)Video game includes, but is not limited to, any electronic amusement device that utilizes a computer, microprocessor, or similar electronic circuitry.
(o)Direct satellite signal receiving equipment includes, but is not limited to, receivers, down converters, amplifiers, and audio or video processors related to the reception of audio, video, or data signals broadcasted or rebroadcasted by communication satellites located in space.
(p)Electronic repair industry means those activities defined in paragraph (1), (2), or (3) of subdivision (f).
(q)Appliance repair industry means those activities defined in paragraph (4) of subdivision (f).
SEC. 4.Section 9810 of the Business and Professions Code is amended to read:9810.(a)(1)There is in the Department of Consumer Affairs a Bureau of Household Goods and Services, under the supervision and control of the director. The director shall administer and enforce the provisions of this chapter and Chapter 3 (commencing with Section 19000) and Chapter 3.1 (commencing with Section 19225) of Division 8.
(2)There is a Division of Household Movers within the bureau for purposes of administering Chapter 3.1 (commencing with Section 19225) of Division 8. The Division of Household Movers shall be overseen by the chief of the bureau.
(b)The Governor shall appoint, subject to confirmation by the Senate, a chief of the bureau at a salary to be fixed and determined by the director with the approval of the Director of Finance. The chief shall serve under the direction and supervision of the director and at the pleasure of the Governor.
(c)Every power granted to or duty imposed upon the director under this chapter and Chapter 3 (commencing with Section 19000) and Chapter 3.1 (commencing with Section 19225) of Division 8 may be exercised or performed in the name of the director by a deputy or assistant director or by the chief, subject to conditions and limitations that the director may prescribe.
(d)Whenever the laws of this state refer to the Bureau of Electronic Repair Dealer Registration or the Bureau of Electronic and Appliance Repair, the reference shall be construed to be to the Bureau of Household Goods and Services.
(e)Notwithstanding any other law, the powers and duties of the Bureau of Household Goods and Services, as set forth in this chapter and Chapter 3 (commencing with Section 19000) and Chapter 3.1 (commencing with Section 19225) of Division 8, shall be subject to review by the appropriate policy committees of the Legislature. The review shall be performed as if this chapter and Chapter 3 (commencing with Section 19000) and Chapter 3.1 (commencing with Section 19225) of Division 8 were scheduled to be repealed on January 1, 2028.
SEC. 5.Section 9812 of the Business and Professions Code is amended to read:9812.The director shall gather evidence of violations of this chapter and of any regulation established hereunder, by any service dealer, whether registered or not, and by any employee, partner, officer, or member of any service dealer. The director shall, on their own initiative, conduct spot check investigations of service dealers throughout the state on a continuous basis, but no less than twice per year.
SEC. 6.Section 9812.5 of the Business and Professions Code is amended to read:9812.5.The director shall gather evidence of violations of this chapter and of any regulation established hereunder by any service contractor, whether registered or not, and by any employee, partner, officer, or member of any service contractor. The director shall, on their own initiative, conduct spot check investigations of service contractors throughout the state on a continuous basis.
This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 7.Section 9814 of the Business and Professions Code is amended to read:9814.The director may establish and enforce regulations as may be reasonable for the conduct of service dealers and for the general enforcement of the various provisions of this chapter in the protection of the public. The director may, by regulation, define the scope of the terms described in subdivisions (g) to (q), inclusive, of Section 9801 to include items of the same general nature or class as those enumerated therein. The director shall either make available on its internet website or distribute to each registered service dealer copies of this chapter and of the regulations thereunder. These regulations shall be adopted, amended, or repealed in accordance with the provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
SEC. 8.Section 9814.5 of the Business and Professions Code is amended to read:9814.5.The director may establish and enforce reasonable regulations for the conduct of service contractors, and for the general enforcement of the various provisions of this chapter in the protection of the public. The director shall either make available on its internet website or distribute to each registered service contractor copies of this chapter and of the regulations adopted under this chapter. Regulations shall be adopted, amended, or repealed in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
SEC. 9.Section 9830.5 of the Business and Professions Code is amended to read:9830.5.(a)Each service contractor shall pay the fee required by this chapter for each place of business operated by them in this state and shall register with the bureau upon forms prescribed by the director. The forms shall contain sufficient information to identify the service contractor, including name, address, retail sellers permit number, if a permit is required under the Sales and Use Tax Law (Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code), a copy of the certificate of qualification as filed with the Secretary of State if the service contractor is a foreign corporation, and other identifying data to be prescribed by the bureau. If the business is to be carried on under a fictitious name, that fictitious name shall be stated. If the service contractor is a partnership, identifying data shall be stated for each partner. If the service contractor is a private company that does not file an annual report on Form 10-K with the Securities and Exchange Commission, data shall be included for each of the officers and directors of the company as well as for the individual in charge of each place of the service contractors business in the State of California, subject to any regulations the director may adopt. If the service contractor is a publicly held corporation or a private company that files an annual report on Form 10-K with the Securities and Exchange Commission, it shall be sufficient for purposes of providing data for each of the officers and directors of the corporation or company to file with the director the most recent annual report on Form 10-K that is filed with the Securities and Exchange Commission.
(b)A service contractor who does not operate a place of business in this state but who sells, issues, or administers service contracts in this state, shall hold a valid registration issued by the bureau and shall pay the registration fee required by this chapter as if they had a place of business in this state.
(c)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 10.Section 9832.5 of the Business and Professions Code is amended to read:9832.5.(a)Registrations issued under this chapter shall expire no more than 12 months after the issue date. The expiration date of registrations shall be set by the director in a manner to best distribute renewal procedures throughout the year.
(b)To renew an unexpired registration, the service contractor shall, on or before the expiration date of the registration, apply for renewal on a form prescribed by the director, and pay the renewal fee prescribed by this chapter.
(c)To renew an expired registration, the service contractor shall apply for renewal on a form prescribed by the director, pay the renewal fee in effect on the last regular renewal date, and pay all accrued and unpaid delinquency and renewal fees. The bureau may impose conditions on a registration issued pursuant to this subdivision.
(d)Renewal is effective on the date that the application is filed, the renewal fee is paid, and all delinquency fees are paid.
(e)For purposes of implementing the distribution of the renewal of registrations throughout the year, the director may extend, by not more than six months, the date fixed by law for renewal of a registration, except that, in that event, any renewal fee that may be involved shall be prorated in such a manner that no person shall be required to pay a greater or lesser fee than would have been required had the change in renewal dates not occurred.
(f)A registration that is not renewed within six years of its expiration shall be canceled, but if the holder of the registration submits a new application and meets all of the following requirements, the registration may be reissued or reinstated:
(1)No fact, circumstance, or condition exists which would justify denial of registration under Section 480.
(2)The registrant pays all renewal, delinquency, and penalty fees that have accrued since the date on which the registration was last renewed.
(g)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 11.Section 9847.5 of the Business and Professions Code is amended to read:9847.5.(a)Each service contractor shall maintain those records as are required by the regulations adopted to carry out the provisions of this chapter for a period of at least three years. These records shall be open for reasonable inspection by the director or other law enforcement officials.
(b)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 12.Section 9849 of the Business and Professions Code, as amended by Section 81 of Chapter 625 of the Statutes of 2022, is amended to read:9849.(a)The expiration of a valid registration shall not deprive the director of jurisdiction to proceed with any investigation or hearing on a cease and desist order against a service dealer or service contractor or to render a decision to suspend, revoke, or place on probation a registration.
(b)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 13.Section 9849 of the Business and Professions Code, as amended by Section 82 of Chapter 625 of the Statutes of 2022, is amended to read:9849.(a)The expiration of a valid registration shall not deprive the director of jurisdiction to proceed with any investigation or hearing on a cease and desist order against a service dealer or to render a decision to suspend, revoke, or place on probation a registration.
(b)This section shall become operative on January 1, 2028.
SEC. 14.Section 9851 of the Business and Professions Code, as amended by Section 83 of Chapter 625 of the Statutes of 2022, is amended to read:9851.(a)The superior court in and for the county wherein any person carries on, or attempts to carry on, business as a service dealer or service contractor in violation of the provisions of this chapter, or any regulation thereunder, shall, on application of the director, issue an injunction or other appropriate order restraining that conduct.
(b)The proceedings under this section shall be governed by Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure, except that the director shall not be required to allege facts necessary to show or tending to show lack of an adequate remedy at law or irreparable injury.
(c)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 15.Section 9851 of the Business and Professions Code, as amended by Section 84 of Chapter 625 of the Statutes of 2022, is amended to read:9851.(a)The superior court in and for the county wherein any person carries on, or attempts to carry on, business as a service dealer in violation of the provisions of this chapter, or any regulation thereunder, shall, on application of the director, issue an injunction or other appropriate order restraining that conduct.
(b)The proceedings under this section shall be governed by Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure, except that the director shall not be required to allege facts necessary to show or tending to show lack of an adequate remedy at law or irreparable injury.
(c)This section shall become operative on January 1, 2028.
SEC. 16.Section 9853 of the Business and Professions Code, as amended by Section 85 of Chapter 625 of the Statutes of 2022, is amended to read:9853.(a)A plea or verdict of guilty or a conviction following a plea of nolo contendere made to a charge substantially related to the qualifications, functions, and duties of a service dealer or service contractor is deemed to be a conviction within the meaning of this article. The director may suspend, revoke, or place on probation a registration, or may deny registration, when the time for appeal has elapsed, or the judgment of conviction has been affirmed on appeal or when an order granting probation is made suspending the imposition of sentence, irrespective of a subsequent order under Section 1203.4 of the Penal Code, allowing that person to withdraw their plea of guilty and to enter a plea of not guilty, or setting aside the verdict of guilty, or dismissing the accusation, information, or indictment.
(b)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 17.Section 9853 of the Business and Professions Code, as amended by Section 86 of Chapter 625 of the Statutes of 2022, is amended to read:9853.(a)A plea or verdict of guilty or a conviction following a plea of nolo contendere made to a charge substantially related to the qualifications, functions, and duties of a service dealer is deemed to be a conviction within the meaning of this article. The director may suspend, revoke, or place on probation a registration, or may deny registration, when the time for appeal has elapsed, or the judgment of conviction has been affirmed on appeal or when an order granting probation is made suspending the imposition of sentence, irrespective of a subsequent order under Section 1203.4 of the Penal Code allowing that person to withdraw their plea of guilty and to enter a plea of not guilty, or setting aside the verdict of guilty, or dismissing the accusation, information, or indictment.
(b)This section shall become operative January 1, 2028.
SEC. 18.Section 9855 of the Business and Professions Code is amended to read:9855.The definitions used in this section shall govern the construction and terms as used in this chapter:
(a)Service contract means a contract in writing to perform, over a fixed period of time or for a specified duration, services relating to the maintenance, replacement, or repair of consumer goods and may include provisions for incidental payment of indemnity under limited circumstances, including, but not limited to, power surges, food spoilage, or accidental damage from handling. Service contract shall not include a contract in writing to maintain structural wiring associated with the delivery of cable, telephone, or other broadband communications services. Service contract shall not include a contract in which a consumer agrees to pay a provider of vision care services for a discount on optical products or contact lenses for a specified duration.
(b)Service contract administrator or administrator means a person who performs or arranges the collection, maintenance, or disbursement of moneys to compensate any party for claims or repairs pursuant to a service contract, and who also performs or arranges any of the following activities on behalf of service contract sellers:
(1)Providing service contract sellers with service contract forms.
(2)Participating in the adjustment of claims arising from service contracts.
(3)Arranging on behalf of service contract sellers the insurance required by Section 9855.2.
A service contract administrator shall not be an obligor on a service contract unless all service contracts under which the service contract administrator is obligated to perform are insured under a service contract reimbursement insurance policy.
(c)(1)Service contract seller or seller means a person who sells or offers to sell a service contract to a service contractholder, including a person who is the obligor under a service contract sold by the seller, manufacturer, or repairer of the product covered by the service contract.
(2)Service contract seller or seller also means a third party, including an obligor, who is not the seller, manufacturer, or repairer of the product. However, a third party shall not be an obligor on a service contract unless the obligor obtains a service contract reimbursement insurance policy for all service contracts under which the third party is obligated under the terms of a service contract.
(3)Service contract seller or seller shall not include the following:
(A)A bank or bank holding company, or the subsidiary or affiliate of either, or a financial institution, licensed under state or federal law, selling or offering to sell a service contract unless that entity is financially and legally obligated under the terms of a service contract.
(B)An electrical device manufacturer or electrical contractor who constructs, installs, or services electrical devices, which include any unit of an electrical system intended to carry electrical energy as part of a buildings electrical system, including raceways, conductors, invertors, conduit, wires, switches, or other similar devices.
(d)Service contractholder means a person who purchases or receives a service contract from a service contract seller.
(e)Service contractor means a service contract administrator or a service contract seller.
(f)Service contract reimbursement insurance policy means a policy of insurance issued by an insurer admitted to do business in this state providing coverage for all obligations and liabilities incurred by a service contract seller under the terms of the service contracts sold in this state by the service contract seller to a service contractholder. The service contract reimbursement insurance policy shall either cover all service contracts sold or specifically cover those contracts sold to residents of the State of California.
(g)Obligor is the entity financially and legally obligated under the terms of a service contract.
(h)Optical products means prescription and nonprescription eyewear. Optical products shall not include contact lenses of any kind.
(i)The terms manufacturer, retail seller, retailer, and sale shall have the same meanings ascribed to them in Section 1791 of the Civil Code.
(j)Consumer goods means any new or used product or part thereof that is used, bought, or leased for use primarily for personal, family, or household purposes, including assistive devices.
SEC. 19.Section 9855.9 of the Business and Professions Code is amended to read:9855.9.This article shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 20.Section 9860 of the Business and Professions Code, as amended by Section 88 of Chapter 625 of the Statutes of 2022, is amended to read:9860.(a)The director shall establish procedures for accepting complaints from the public against any service dealer or service contractor.
(b)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 21.Section 9860 of the Business and Professions Code, as amended by Section 89 of Chapter 625 of the Statutes of 2022, is amended to read:9860.(a)The director shall establish procedures for accepting complaints from the public against any service dealer.
(b)This section shall become operative on January 1, 2028.
SEC. 22.Section 9862.5 of the Business and Professions Code is amended to read:9862.5.(a)If a complaint indicates a possible violation of this chapter or of the regulations adopted pursuant to this chapter, the director may advise the service contractor of the contents of the complaint and, if the service contractor is so advised, the director shall make a summary investigation of the facts after the service contractor has had reasonable opportunity to reply thereto.
(b)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 23.Section 9863 of the Business and Professions Code, as amended by Section 91 of Chapter 625 of the Statutes of 2022, is amended to read:9863.(a)If, upon summary investigation, it appears probable to the director that a violation of this chapter, or the regulations thereunder, has occurred, the director, in their discretion, may suggest measures that in the directors judgment would compensate the complainant for the damages they suffered as a result of the alleged violation. If the service dealer or service contractor accepts the directors suggestions and performs accordingly, the director shall give that fact due consideration in any subsequent disciplinary proceeding. If the service dealer or service contractor declines to abide by the suggestions of the director, the director may investigate further and may institute disciplinary proceedings in accordance with the provisions of this chapter.
(b)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 24.Section 9863 of the Business and Professions Code, as amended by Section 92 of Chapter 625 of the Statutes of 2022, is amended to read:9863.(a)If, upon summary investigation, it appears probable to the director that a violation of this chapter, or the regulations thereunder, has occurred, the director, in their discretion, may suggest measures that in the directors judgment would compensate the complainant for the damages they suffered as a result of the alleged violation. If the service dealer accepts the directors suggestions and performs accordingly, the director shall give that fact due consideration in any subsequent disciplinary proceeding. If the service dealer declines to abide by the suggestions of the director, the director may investigate further and may institute disciplinary proceedings in accordance with the provisions of this chapter.
(b)This section shall become operative on January 1, 2028.
SEC. 25.Section 9870 of the Business and Professions Code is amended to read:9870.All fees collected pursuant to this chapter shall be paid into the State Treasury to the credit of the Household Goods and Services Fund, which fund is hereby created.
SEC. 26.Section 9871 of the Business and Professions Code is amended to read:9871.The director shall report to the State Controller at the beginning of each month, for the month preceding, the amount and source of all revenue received by the bureau pursuant to this chapter, and at that time shall pay the entire amount thereof into the State Treasury for credit to the Household Goods and Services Fund.
SEC. 27.Section 9872 of the Business and Professions Code is amended to read:9872.The money in the Household Goods and Services Fund necessary for the administration of the bureau and the administration of this chapter shall be used for those purposes.
SEC. 28.Section 9873 of the Business and Professions Code, as amended by Section 93 of Chapter 625 of the Statutes of 2022, is amended to read:9873.The fees prescribed by this chapter shall be set by the director by regulation, according to the following schedule:
(a)(1)The initial registration fee for an electronic repair industry service dealer or for an appliance repair industry service dealer is not more than two hundred five dollars ($205) for each place of business in this state. The initial registration fee for a service contractor is not more than ninety-five dollars ($95) for each place of business in this state.
(2)The initial registration fee for a person who engages in business as both an electronic repair industry service dealer and an appliance repair industry service dealer is not more than four hundred five dollars ($405) for each place of business in this state. The initial registration fee for a person who is a service contractor and engages in business as either an electronic repair industry service dealer or an appliance repair industry service dealer is not more than three hundred dollars ($300) for each place of business in this state.
(3)The initial registration fee for a person who engages in both the electronic repair industry and the appliance repair industry as a service dealer and is a service contractor is not more than five hundred dollars ($500) for each place of business in this state.
(4)A service dealer or service contractor who does not operate a place of business in this state, but engages in the electronic repair industry or the appliance repair industry, or sells, issues, or administers service contracts in this state, shall pay the registration fee specified herein as if that service dealer or service contractor had a place of business in this state.
(b)(1)The annual registration renewal fee for an electronic repair industry service dealer or for an appliance repair industry service dealer is not more than two hundred five dollars ($205) for each place of business in this state, if renewed prior to its expiration date. The annual registration renewal fee for a service contractor is ninety-five dollars ($95) for each place of business in this state, if renewed prior to its expiration date.
(2)The annual renewal fee for a service dealer who engages in the business as both an electronic repair industry service dealer and an appliance repair industry service dealer is not more than four hundred dollars ($400) for each place of business in this state.
(3)The annual renewal fee for a service dealer who engages in the electronic repair industry and the appliance repair industry and is a service contractor is not more than four hundred seventy-five dollars ($475) for each place of business in this state.
(4)A service dealer or service contractor who does not operate a place of business in this state, but who engages in the electronic repair industry or the appliance repair industry, or sells or issues service contracts in this state, shall pay the renewal fee specified herein as if that service dealer or service contractor had a place of business in this state.
(c)The delinquency fee is an amount equal to 50 percent of the renewal fee for a license in effect on the date of renewal of the license, except as otherwise provided in Section 163.5.
(d) This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 29.Section 9873 of the Business and Professions Code, as amended by Section 94 of Chapter 625 of the Statutes of 2022, is amended to read:9873.The fees prescribed by this chapter shall be set by the director by regulation, according to the following schedule:
(a)The initial registration fee for an electronic repair industry service dealer or for an appliance repair industry service dealer is not more than two hundred five dollars ($205) for each place of business in this state. The initial registration fee for a person who engages in business as both an electronic repair industry service dealer and an appliance repair industry service dealer is not more than four hundred five dollars ($405).
(b)The annual registration renewal fee for an electronic repair industry service dealer or for an appliance repair industry service dealer is not more than two hundred five dollars ($205) for each place of business in this state, if renewed prior to its expiration date. The annual renewal fee for a service dealer who engages in the business as both an electronic repair industry service dealer and an appliance repair industry service dealer is not more than four hundred dollars ($400).
(c)The delinquency fee is an amount equal to 50 percent of the renewal fee for a license in effect on the date of renewal of the license, except as otherwise provided in Section 163.5.
(d)This section shall become operative on January 1, 2028.
SEC. 30.Section 9874 of the Business and Professions Code is amended to read:9874.All salaries, expenses, or costs incurred or sustained pursuant to this chapter shall be payable only out of the Household Goods and Services Fund.
SEC. 31.Section 9874.5 is added to the Business and Professions Code, to read:9874.5.(a)All moneys in the Electronic and Appliance Repair Fund shall be transferred to the Household Goods and Services Fund by July 1, 2026. On July 1, 2026, the Electronic and Appliance Repair Fund shall be abolished.
(b)This section shall remain in effect only until December 31, 2026, and as of that date is repealed.
SEC. 32.Section 19002 of the Business and Professions Code is amended to read:19002.Person includes any individual, partnership, association, firm, auctioneer, trust, limited liability company, and corporation, and the agents, servants, and employees of any of them.
SEC. 33.Section 19063 of the Business and Professions Code is amended to read:19063.The bureau may refuse to issue any license provided for in this chapter to any individual:
(a)Who has had any license issued to them revoked, or whose license is under suspension, or who has failed to renew their license while it was under suspension.
(b)If any license of a partnership or limited liability company of which they are or were a member, or of a corporation of which they are or were an officer or director, or of a firm or association of which they are or were an officer or of which they are or were acting in a managerial capacity, has had any license issued to it revoked or suspended, and while acting as a member, officer, director, or in a managerial capacity they participated in any of the prohibited acts for which the license was revoked or suspended.
SEC. 34.Section 19064 of the Business and Professions Code is amended to read:19064.The bureau may refuse to issue any license provided for in this chapter to any partnership, corporation, limited liability company, firm, or association:
(a)Who has had any license issued to it revoked, or whose license is under suspension, or who has failed to renew its license while it was under suspension.
(b)If any member of the partnership, or any officer or director of the corporation, or any officer or person acting in a managerial capacity of the firm or association has had any license issued to them revoked, or whose license is under suspension, or who has failed to renew their license while it was under suspension.
(c)If any member of the limited liability company or of the partnership, or any officer or director of the corporation, or any officer or person acting in a managerial capacity of the firm or association, was either a member of any limited liability company or of any partnership, or an officer or director of any corporation, or an officer or person acting in a managerial capacity of any firm or association, whose license has been revoked, or whose license is under suspension, or who failed to renew a license while it was under suspension, and while acting as a member, officer, director, or person acting in a managerial capacity participated in any of the prohibited acts for which any license was revoked or suspended.
SEC. 35.Section 19094 of the Business and Professions Code is amended to read:19094.(a)For the purposes of this section, the following definitions shall apply:
(1)Component means the separate constituent parts of upholstered furniture sold in California, as identified in Technical Bulletin 117-2013, specifically cover fabrics, barrier materials, resilient filling materials, and decking materials.
(2)Covered products means any flexible polyurethane foam or upholstered or reupholstered furniture sold in California that is required to meet the test requirements set forth in Technical Bulletin 117-2013, entitled Requirements, Test Procedure and Apparatus for Testing the Smolder Resistance of Materials Used in Upholstered Furniture.
(3)Flame-retardant chemical means any chemical or chemical compound for which a functional use is to resist or inhibit the spread of fire. Flame retardant chemicals include, but are not limited to, halogenated, phosphorous-based, nitrogen-based, and nanoscale flame retardants, flame-retardant chemicals listed as designated chemicals pursuant to Section 105440 of the Health and Safety Code, and any chemical or chemical compound for which flame retardant appears on the substance Safety Data Sheet (SDS) pursuant to Section 1910.1200(g) of Title 29 of the Code of Federal Regulations.
(4)Chemical means either of the following:
(A)An organic or inorganic substance of a particular molecular identity, including any combination of those substances occurring, in whole or in part, as a result of a chemical reaction or occurring in nature, and any element, ion, or uncombined radical, and any degradate, metabolite, or reaction product of a substance with a particular molecular identity.
(B)A chemical ingredient, which means a substance comprising one or more substances described in subparagraph (A).
(5)Molecular identity means the substances properties listed below:
(A)Agglomeration state.
(B)Bulk density.
(C)Chemical composition, including surface coating.
(D)Crystal structure.
(E)Dispersability.
(F)Molecular structure.
(G)Particle density.
(H)Particle size, size distribution, and surface area.
(I)Physical form and shape, at room temperature and pressure.
(J)Physicochemical properties.
(K)Porosity.
(L)Solubility in water and biologically relevant fluids.
(M)Surface charge.
(N)Surface reactivity.
(6)Added flame retardant chemicals means flame-retardant chemicals that are present in any covered product or component thereof at levels above 1,000 parts per million.
(7)Department means the Department of Toxic Substances Control.
(8)Consumer Price Index means the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics.
(b)(1)A manufacturer of covered products shall indicate whether or not the product contains added flame retardant chemicals by including the following flame-retardant chemical statement on the label described in Section 1374.3 of Title 4 of the California Code of Regulations for covered products:
The upholstery materials in this product:
_____contain added flame retardant chemicals
_____contain NO added flame retardant chemicals
The State of California has updated the flammability standard and determined that the fire safety requirements for this product can be met without adding flame retardant chemicals. The state has identified many flame retardant chemicals as being known to, or strongly suspected of, adversely impacting human health or development.
A manufacturer of covered products shall indicate the absence or presence of added flame-retardant chemicals by placing an X in one of the appropriate blanks.
(2)This statement shall be included in the label described in Section 1374.3 of Title 4 of the California Code of Regulations in accordance with the bureaus regulations for that label. The statement need not be in all capital letters, and shall follow the statement required by Section 1374.3 of Title 4 of the California Code of Regulations.
(c)(1)The bureau shall ensure compliance with the labeling requirements in this section.
(2)(A)The bureau shall provide the Department of Toxic Substances Control with a selection of samples from covered products marked contain NO added flame retardant chemicals for testing for the presence of added flame retardant chemicals. The samples shall be from the components identified in paragraph (1) of subdivision (a). The bureau shall select samples based on consultation with the department, taking into account a range of manufacturers and types of covered products. The bureau and the department shall consult on the tests to be conducted by the department. The department shall provide the results of any completed test to the bureau. The bureau shall reimburse the department for the cost of testing for the presence of added flame retardant chemicals in covered products marked contain NO added flame retardant chemicals.
(B)No later than August 1 of each fiscal year, the bureau shall assess available resources and determine the number of tests to be conducted in the corresponding fiscal year, pursuant to this subparagraph.
(3)(A)If the departments testing shows that a covered product labeled as contain NO added flame retardant chemicals is mislabeled because it contains added flame-retardant chemicals, the bureau may assess fines for violations against manufacturers of the covered product and component manufacturers to be held jointly and severally liable for the violation.
(B)A fine for a violation of this subparagraph relating to mislabeling shall be assessed in accordance with the factors described in subdivision (d) and the following schedule:
(i)The fine for the first violation shall be not less than one thousand dollars ($1,000) but not more than two thousand five hundred dollars ($2,500).
(ii)The fine for the second violation shall be not less than two thousand five hundred dollars ($2,500) but not more than five thousand dollars ($5,000).
(iii)The fine for the third violation shall be not less than five thousand dollars ($5,000) but not more than seven thousand five hundred dollars ($7,500).
(iv)The fine for any subsequent violation shall be not less than seven thousand five hundred dollars ($7,500) but not more than ten thousand dollars ($10,000).
(C)The fines in paragraph (B) shall replace any other fines in this article for a violation of the testing requirements of this section. This clause does not alter or amend any other penalty otherwise imposed by this article.
(D)If the departments testing shows that a covered product labeled as contain NO added flame retardant chemicals is mislabeled because it contains added flame retardant chemicals, in addition to a fine or any other request, the bureau may request that the label required by subdivision (b) for covered products that belong to the same stock keeping unit (SKU) currently produced by the manufacturer be corrected to reflect that flame retardant chemicals are added to the covered product.
(E)If the departments testing shows that a covered product labeled as contain NO added flame retardant chemicals is mislabeled because it contains added flame retardant chemicals, in addition to a fine or any other request, the bureau may request additional testing of more products belonging to the same stock keeping unit (SKU) at the manufacturers expense to verify the accuracy of the label required by subdivision (b) for covered products if the manufacturer wishes to retain the contain NO added flame-retardant chemicals designation on the label required by subdivision (b).
(d)(1)The bureau shall make information about any citation issued pursuant to this section available to the public on its internet website.
(2)In determining the amount of the fine for violations of this section, the bureau shall consider the following factors:
(A)The nature and severity of the violation.
(B)The good or bad faith of the cited person.
(C)The history of previous violations.
(D)Evidence that the violation was willful.
(E)The extent to which the cited person or entity has cooperated with the bureau.
(3)(A)The bureau shall adjust all minimum and maximum fines imposed by this section for inflation every five years.
(B)The adjustment shall be equivalent to the percentage, if any, that the Consumer Price Index at the time of adjustment exceeds the Consumer Price Index at the time this section goes into effect. Any increase determined under this paragraph shall be rounded as follows:
(i)In multiples of ten dollars ($10) in the case of penalties less than or equal to one hundred dollars ($100).
(ii)In multiples of one hundred dollars ($100) in the case of penalties greater than one hundred dollars ($100) but less than or equal to one thousand dollars ($1,000).
(iii)In multiples of one thousand dollars ($1,000) in the case of penalties greater than one thousand dollars ($1,000).
(4)It shall be the duty of the bureau to receive complaints from consumers concerning covered products sold in California.
(e)The bureau may adopt regulations pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) to carry out this section.
SEC. 36.Section 19174 of the Business and Professions Code is amended to read:19174.All fees collected under this chapter shall be reported to the Controller and paid to the Treasurer and credited to the Household Goods and Services Fund, to be expended only for the purposes of the bureau and in carrying out this chapter.
SEC. 37.Section 19174.5 is added to the Business and Professions Code, to read:19174.5.(a)All moneys in the Home Furnishings and Thermal Insulation Fund shall be transferred to the Household Goods and Services Fund by July 1, 2026. On July 1, 2026, the Home Furnishing and Thermal Insulation Fund shall be abolished.
(b)This section shall remain in effect only until December 31, 2026, and as of that date is repealed.
SEC. 38.Section 19211 of the Business and Professions Code is amended to read:19211.Any person who has been denied a license, or who has had their license revoked, or whose license is under suspension, or who has failed to renew their license while it was under suspension, or any person who has been a member of any limited liability company or of any partnership, or an officer or director of any corporation, or an officer or person acting in a managerial capacity of any firm or association, whose license has been revoked, or whose license is under suspension, or who has failed to renew a license while it was under suspension, and while acting as a member, officer, director, or person acting in a managerial capacity, participated in any of the prohibited acts for which the license was suspended, or revoked, shall be prohibited from serving as a member of any licensed limited liability company or of any licensed partnership, or as an officer or director of any licensed corporation, or as an officer or person acting in a managerial capacity of any licensed firm or association, and the employment, election, or association of a person in this capacity by a licensee shall constitute grounds for disciplinary action against the licensee.
SEC. 39.Section 19212 of the Business and Professions Code is amended to read:19212.The performance by any partnership, limited liability company, corporation, firm, or association of any act or omission constituting a cause for disciplinary action, likewise constitutes a cause for disciplinary action against any licensee who is a member of that partnership or limited liability company, or an officer or director of that corporation, or an officer or person acting in a managerial capacity of that firm or association, if the licensee participated in the prohibited act or omission.
SEC. 40.Section 19214 of the Business and Professions Code is amended to read:19214.Any person who violates or proposes to violate any provision of this chapter relating to insulation standards may be enjoined by any court of competent jurisdiction. The court may make those orders or judgments, including the appointment of a receiver, as may be necessary to prevent the use or employment by any person of any practices which violate this chapter, or which may be necessary to restore to any person in interest any money or property, real or personal, which may have been acquired by means of any practice which violates any provision of this chapter.
Actions for injunction under this section may be prosecuted by the Attorney General or any district attorney, county counsel, city attorney, or city prosecutor in this state in the name of the people of the State of California upon their own motion or upon the complaint of any board, officer, person, corporation, association, partnership, limited liability company, or by any person acting for the interests of itself, its members, or the general public.
(a)A person who violates any provision of this chapter shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation, which shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the Attorney General or by any district attorney, county counsel, city attorney, or city prosecutor in any court of competent jurisdiction. The unit for a separate and distinct offense regarding insulation in violation of this chapter is each and every bag, bale, package, roll, or other container sold, offered for sale, or possessed with intent to sell or install contrary to the provisions of this chapter.
(b)If the action is brought by the Attorney General, one-half of the penalty collected shall be paid to the treasurer of the county in which the judgment was entered, and one-half to the Treasurer. If brought by a district attorney or county counsel, the entire amount of penalty collected shall be paid to the treasurer of the county in which the judgment was entered. If brought by a city attorney or city prosecutor, one-half of the penalty shall be paid to the treasurer of the county and one-half to the city.
(c)If the action is brought at the request of the bureau, the court shall determine the reasonable expenses incurred by the bureau in the investigation and prosecution of the action.
Before any penalty collected is paid out pursuant to subdivision (b), the amount of the reasonable expenses incurred by the bureau shall be paid to the Treasurer.
SEC. 41.Section 19225.5 of the Business and Professions Code is amended to read:19225.5.For purposes of this chapter, unless the context otherwise requires, the following provisions shall apply:
(a)Broker means a person engaged by others in the act of arranging, for compensation, the intrastate transportation of used household goods by a motor vehicle over the highways of this state for, or on behalf of, a shipper, a consignor, or a consignee.
(b)Bureau refers to the Bureau of Household Goods and Services, as established in Section 9810.
(c)Chief refers to the chief of the bureau.
(d)Corporation includes a corporation, a company, a limited liability company, an association, and a joint stock association.
(e)Department refers to the Department of Consumer Affairs.
(f)Director refers to the Director of Consumer Affairs.
(g)Fund means the Household Goods and Services Fund established pursuant to Section 9870.
(h)Household mover includes every corporation or person, their lessees, trustee, receivers, or trustees appointed by any court whatsoever, engaged in the permitted or unpermitted transportation for compensation or hire as a business by means of a motor vehicle or motor vehicles being used in the transportation of used household goods and personal effects over any public highway in this state. A broker, as defined in subdivision (a), shall be considered a household mover. The Legislature intends household mover to have the same meaning as household goods carrier in former Section 5109 of the Public Utilities Code, as that section read on June 30, 2018.
(i)Inspector refers to an inspector either employed by, or under contract to, the bureau.
(j)Motor vehicle means every motor truck, tractor, or other self-propelled vehicle used for transportation of property over the public highways, other than upon fixed rails or tracks, and any trailer, semitrailer, dolly, or other vehicle drawn thereby.
(k)Owner, with respect to a motor vehicle used in the transportation of property for compensation by a household mover, means the corporation or person who is registered with the Department of Motor Vehicles as the owner of the vehicle, or who has a legal right to possession of the vehicle pursuant to a lease or rental agreement.
(l)Person includes an individual, a firm, or a partnership.
(m)Public highway includes every public street, road, or highway in this state.
SEC. 42.Section 19229 of the Business and Professions Code is amended to read:19229.(a)Moneys in the fund shall be used, upon appropriation by the Legislature, by the bureau for the administration of this chapter.
(b)Except as otherwise provided in this chapter, all moneys, including fines or penalties imposed under this chapter, collected pursuant to this chapter shall be deposited into the fund.
SEC. 43.Section 19229.5 is added to the Business and Professions Code, to read:19229.5.(a)All moneys in the Household Movers Fund shall be transferred to the Household Goods and Services Fund by July 1, 2026. On July 1, 2026, the Household Movers Fund shall be abolished.
(b)This section shall remain in effect only until December 31, 2026, and as of that date is repealed.
SEC. 44.Section 19239 of the Business and Professions Code is amended to read:19239.(a)Before a permit is issued, the bureau shall require the applicant to establish ability and reasonable financial responsibility to initiate the proposed operations. The bureau shall require the applicant to establish their knowledge and ability to engage in business as a household mover by examination. The examination may be written or oral, or in the form of a demonstration of skill, or any combination of these, and any investigation of character, experience, and any tests of technical knowledge and manual skill that the bureau determines to be appropriate may be employed. In any examination, the qualification of the applicant shall be determined by an appraisal made by a member of the bureaus staff. The criteria used by the bureau staff in making the required appraisal to determine whether the applicant has met the qualifications shall be established by the bureau by rule or regulation, in accordance with the provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. An applicant who has been determined to be unqualified may establish their qualifications through a subsequent examination, but no subsequent examination shall be taken prior to 30 days from the date when the applicant was found to be unqualified. If the staff member determines that the applicant is not qualified and denies the application, the bureau shall notify the applicant in writing. Within 30 days of service of the notice, the applicant may file a written request with the bureau for a hearing on the denial. Upon receipt of a timely filed request, the bureau shall request that the matter be set for a hearing. The hearing shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director shall have all the powers granted therein. If the staff member determines that the applicant is qualified, the bureau may issue a permit without a hearing.
(b)An applicant may qualify in one of the following ways:
(1)If an individual, they may qualify by personal examination or by examination of their responsible managing employee.
(2)If a partnership or corporation, or any other type of business organization, it may qualify by examination of the responsible managing officer, an employee who works at least 32 hours per week, or a partner of the applicant firm.
(c)If the individual qualified by examination ceases to be connected with the permitholder, the permitholder shall notify the bureau in writing within 30 days after the cessation. If notice is given, the permit shall remain in force a reasonable length of time in order that another representative of the applicant may be qualified before the bureau. If the permitholder fails to notify the bureau of the cessation within a 30-day period, at the end of that period the permit shall be automatically suspended.
(d)Each applicant for a permit shall electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice for each owner, partner, officer, and director as a prerequisite to the issuance of a permit to operate as a household mover. The fingerprint images and related information shall be submitted for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and arrests, and information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on their own recognizance, pending trial or appeal.
(1)The Department of Justice shall provide a response to the bureau pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.
(2)The bureau shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.
(3)The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this subdivision.
(e)The bureau may require, as a precondition to the issuance of a permit, the procurement of a performance bond sufficient to facilitate the collection of fines, penalties, and restitution related to enforcement actions that can be taken against the applicant.
(f)The bureau may refuse to issue a permit if it is shown that an applicant or an officer, director, partner, or associate of an applicant has committed any act constituting dishonesty or fraud; committed any act that, if committed by a permitholder, would be grounds for a suspension or revocation of the permit; misrepresented any material fact on the application; or, was convicted of an offense that is substantially related to the qualifications, functions, or duties of the business or profession, except that if the bureau determines that the applicant is otherwise suitable to be issued a permit, and granting the permit would not compromise public safety, the bureau shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the applicant, and shall evaluate the suitability of the applicant to be issued a permit based on the evidence found through the review.
(g)A permit shall not be issued unless it has been shown that the applicant meets one of the following residence requirements:
(1)For an individual, the applicant shall have resided in the State of California for not less than 90 days next preceding the filing of the application.
(2)For a partnership, the partner having the largest percentage interest in the partnership shall have resided in the State of California continuously for not less than 90 days next preceding the filing of the application.
(3)For a limited liability company or a corporation, the applicant shall be a domestic limited liability company or a domestic corporation or shall be qualified to transact business in the State of California as a foreign limited liability company or a foreign corporation at the time of filing the application.
(h)The bureau shall prescribe, amend, and repeal rules in accordance with law for the administration of this section.
(i)If the bureau denies an application, the bureau shall notify the applicant in writing. Within 30 days of service of the notice, the applicant may file a written request with the bureau for a hearing on the denial. Upon receipt of a timely filed request, the bureau shall request that the matter be set for hearing. The hearing shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director shall have all the powers granted therein.
SEC. 45.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)There is in the State Treasury the Professions and Vocations Fund. The fund shall consist of the following special funds:
(1)Accountancy Fund.
(2)California Architects Board Fund.
(3)Athletic Commission Fund.
(4)Barbering and Cosmetology Contingent Fund.
(5)Cemetery and Funeral Fund.
(6)Contractors License Fund.
(7)State Dentistry Fund.
(8)Home Furnishings and Thermal Insulation Fund.
(9)California Architects Board-Landscape Architects Fund.
(10)Contingent Fund of the Medical Board of California.
(11)Optometry Fund.
(12)Pharmacy Board Contingent Fund.
(13)Physical Therapy Fund.
(14)Private Security Services Fund.
(15)Professional Engineers, Land Surveyors, and Geologists Fund.
(16)Consumer Affairs Fund.
(17)Behavioral Sciences Fund.
(18)Licensed Midwifery Fund.
(19)Court Reporters Fund.
(20)Veterinary Medical Board Contingent Fund.
(21)Vocational Nursing and Psychiatric Technicians Fund.
(22)Electronic and Appliance Repair Fund.
(23)Acupuncture Fund.
(24)Physician Assistant Fund.
(25)Board of Podiatric Medicine Fund.
(26)Psychology Fund.
(27)Respiratory Care Fund.
(28)Speech-Language Pathology and Audiology and Hearing Aid Dispensers Fund.
(29)Board of Registered Nursing Fund.
(30)Animal Health Technician Examining Committee Fund.
(31)State Dental Hygiene Fund.
(32)Structural Pest Control Fund.
(33)Structural Pest Control Education and Enforcement Fund.
(34)Structural Pest Control Research Fund.
(35)Household Movers Fund.
(36)Household Goods and Services Fund.
(b)For accounting and recordkeeping purposes, the Professions and Vocations Fund shall be deemed to be a single special fund, and each of the several special funds therein shall constitute and be deemed to be a separate account in the Professions and Vocations Fund. Each account or fund shall be available for expenditure only for the purposes as are now or may hereafter be provided by law.
(c)This section shall remain in effect only until July 1, 2024, 2026, and as of that date is repealed.
SEC. 2.Section 205 is added to the Business and Professions Code, to read:205.(a)There is in the State Treasury the Professions and Vocations Fund. The fund shall consist of the following special funds:
(1)Accountancy Fund.
(2)California Architects Board Fund.
(3)Athletic Commission Fund.
(4)Barbering and Cosmetology Contingent Fund.
(5)Cemetery and Funeral Fund.
(6)Contractors License Fund.
(7)State Dentistry Fund.
(8)California Architects Board-Landscape Architects Fund.
(9)Contingent Fund of the Medical Board of California.
(10)Optometry Fund.
(11)Pharmacy Board Contingent Fund.
(12)Physical Therapy Fund.
(13)Private Security Services Fund.
(14)Professional Engineers, Land Surveyors, and Geologists Fund.
(15)Consumer Affairs Fund.
(16)Behavioral Sciences Fund.
(17)Licensed Midwifery Fund.
(18)Court Reporters Fund.
(19)Veterinary Medical Board Contingent Fund.
(20)Vocational Nursing and Psychiatric Technicians Fund.
(21)Acupuncture Fund.
(22)Physician Assistant Fund.
(23)Board of Podiatric Medicine Fund.
(24)Psychology Fund.
(25)Respiratory Care Fund.
(26)Speech-Language Pathology and Audiology and Hearing Aid Dispensers Fund.
(27)Board of Registered Nursing Fund.
(28)Animal Health Technician Examining Committee Fund.
(29)State Dental Hygiene Fund.
(30)Structural Pest Control Fund.
(31)Structural Pest Control Education and Enforcement Fund.
(32)Structural Pest Control Research Fund.
(33)Household Goods and Services Fund.
(b)For accounting and recordkeeping purposes, the Professions and Vocations Fund shall be deemed to be a single special fund, and each of the several special funds therein shall constitute and be deemed to be a separate account in the Professions and Vocations Fund. Each account or fund shall be available for expenditure only for the purposes as are now or may hereafter be provided by law.
(c)This section shall become operative on July 1, 2024. 2026.
SEC. 3.Section 9801 of the Business and Professions Code is amended to read:9801.The following terms as used in this chapter have the meaning expressed in this section:
(a)Person includes a firm, partnership, association, limited liability company, or corporation.
(b)Department means the Department of Consumer Affairs.
(c)Director means the Director of Consumer Affairs.
(d)Bureau means the Bureau of Household Goods and Services.
(e)Chief means the Chief of the Bureau of Household Goods and Services.
(f)Service dealer means a person who, for compensation, engages in, or holds themselves out to the public as offering services in the business of:
(1)Repairing, servicing, or maintaining an electronic set normally used or sold for personal, family, household, or home office use.
(2)Installing, repairing, servicing, or maintaining equipment or a burglar alarm system for use in private motor vehicles.
(3)Installing, repairing, servicing, or maintaining television or radio receiver antennas, rotators, and accessories or direct satellite signal receiving equipment located on or adjacent to a residence and not involving a function that is subject to and regulated under the provisions of Chapter 9 (commencing with Section 7000).
(4)Repairing, servicing, or maintaining major appliances.
(g)Equipment for the purposes of this chapter means an electronic set, appliance, antenna, rotator, and accessories.
(h)Electronic set includes, but is not limited to, any television, radio, audio or video recorder or playback equipment, video camera, video game, video monitor, computer system, cellular device, such as a telephone or tablet, photocopier, facsimile machine, or any other device that depends for its functioning, in whole or in part, on any digital electronic embedded or attached to the product and has a value over ten dollars ($10) and is normally used or sold for personal, family, household, or home office use.
(i)Appliance or major home appliance means any device primarily used for residential purposes, including, but not limited to, any refrigerator, freezer, range, microwave oven, washer, dryer, dishwasher, trash compactor, ice maker, dehumidifier, residential portable furnace, or room air-conditioner normally used or sold for personal, family, household, or home office use, or for use in private motor vehicles.
(j)Antenna includes, but is not limited to, a resonant device designed especially for the purpose of capturing electromagnetic energy transmitted by direct satellite or commercial radio or television broadcasting facilities. An antenna and its associated accessories are not deemed to be a part of a set and shall be considered, under this section, to be located outside or in the attic of a residence.
(k)Rotator, when used in connection with an antenna installation or repair, includes, but is not limited to, an electromechanical device operated from a remote location to rotate an antenna on a horizontal plane. A rotator and its associated accessories are not deemed to be a part of a set and shall be considered under this section, with the exception of the directional control unit, to be located outside or in the attic of a residence.
(l)Accessories, when used in connection with an antenna or rotator installation or repair, includes, but is not limited to, masts, towers, clamps, guy wires, eye hooks, standoff insulators, roof saddles, vent pipe mounts, chimney mount kits, signal amplifiers/boosters, multiset couplers, transmission lines, control cables, directional control units, and other devices as may be used from time to time to effect installation or repair.
(m)Computer system includes, but is not limited to, a central processing unit that performs data manipulation functions, and any associated peripheral devices, including, but not limited to, keyboards, display terminals, printers, or disk drives.
(n)Video game includes, but is not limited to, any electronic amusement device that utilizes a computer, microprocessor, or similar electronic circuitry.
(o)Direct satellite signal receiving equipment includes, but is not limited to, receivers, down converters, amplifiers, and audio or video processors related to the reception of audio, video, or data signals broadcasted or rebroadcasted by communication satellites located in space.
(p)Electronic repair industry means those activities defined in paragraph (1), (2), or (3) of subdivision (f).
(q)Appliance repair industry means those activities defined in paragraph (4) of subdivision (f).
SEC. 4.Section 9810 of the Business and Professions Code is amended to read:9810.(a)(1)There is in the Department of Consumer Affairs a Bureau of Household Goods and Services, under the supervision and control of the director. The director shall administer and enforce the provisions of this chapter and Chapter 3 (commencing with Section 19000) and Chapter 3.1 (commencing with Section 19225) of Division 8.
(2)There is a Division of Household Movers within the bureau for purposes of administering Chapter 3.1 (commencing with Section 19225) of Division 8. The Division of Household Movers shall be overseen by the chief of the bureau.
(b)The Governor shall appoint, subject to confirmation by the Senate, a chief of the bureau at a salary to be fixed and determined by the director with the approval of the Director of Finance. The chief shall serve under the direction and supervision of the director and at the pleasure of the Governor.
(c)Every power granted to or duty imposed upon the director under this chapter and Chapter 3 (commencing with Section 19000) and Chapter 3.1 (commencing with Section 19225) of Division 8 may be exercised or performed in the name of the director by a deputy or assistant director or by the chief, subject to conditions and limitations that the director may prescribe.
(d)Whenever the laws of this state refer to the Bureau of Electronic Repair Dealer Registration or the Bureau of Electronic and Appliance Repair, the reference shall be construed to be to the Bureau of Household Goods and Services.
(e)Notwithstanding any other law, the powers and duties of the Bureau of Household Goods and Services, as set forth in this chapter and Chapter 3 (commencing with Section 19000) and Chapter 3.1 (commencing with Section 19225) of Division 8, shall be subject to review by the appropriate policy committees of the Legislature. The review shall be performed as if this chapter and Chapter 3 (commencing with Section 19000) and Chapter 3.1 (commencing with Section 19225) of Division 8 were scheduled to be repealed on January 1, 2028.
SEC. 5.Section 9812 of the Business and Professions Code is amended to read:9812.The director shall gather evidence of violations of this chapter and of any regulation established hereunder, by any service dealer, whether registered or not, and by any employee, partner, officer, or member of any service dealer. The director shall, on their own initiative, conduct spot check investigations of service dealers throughout the state on a continuous basis, but no less than twice per year.
SEC. 6.Section 9812.5 of the Business and Professions Code is amended to read:9812.5.The director shall gather evidence of violations of this chapter and of any regulation established hereunder by any service contractor, whether registered or not, and by any employee, partner, officer, or member of any service contractor. The director shall, on their own initiative, conduct spot check investigations of service contractors throughout the state on a continuous basis.
This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 7.Section 9814 of the Business and Professions Code is amended to read:9814.The director may establish and enforce regulations as may be reasonable for the conduct of service dealers and for the general enforcement of the various provisions of this chapter in the protection of the public. The director may, by regulation, define the scope of the terms described in subdivisions (g) to (q), inclusive, of Section 9801 to include items of the same general nature or class as those enumerated therein. The director shall either make available on its internet website or distribute to each registered service dealer copies of this chapter and of the regulations thereunder. These regulations shall be adopted, amended, or repealed in accordance with the provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
SEC. 8.Section 9814.5 of the Business and Professions Code is amended to read:9814.5.The director may establish and enforce reasonable regulations for the conduct of service contractors, and for the general enforcement of the various provisions of this chapter in the protection of the public. The director shall either make available on its internet website or distribute to each registered service contractor copies of this chapter and of the regulations adopted under this chapter. Regulations shall be adopted, amended, or repealed in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
SEC. 9.Section 9830.5 of the Business and Professions Code is amended to read:9830.5.(a)Each service contractor shall pay the fee required by this chapter for each place of business operated by them in this state and shall register with the bureau upon forms prescribed by the director. The forms shall contain sufficient information to identify the service contractor, including name, address, retail sellers permit number, if a permit is required under the Sales and Use Tax Law (Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code), a copy of the certificate of qualification as filed with the Secretary of State if the service contractor is a foreign corporation, and other identifying data to be prescribed by the bureau. If the business is to be carried on under a fictitious name, that fictitious name shall be stated. If the service contractor is a partnership, identifying data shall be stated for each partner. If the service contractor is a private company that does not file an annual report on Form 10-K with the Securities and Exchange Commission, data shall be included for each of the officers and directors of the company as well as for the individual in charge of each place of the service contractors business in the State of California, subject to any regulations the director may adopt. If the service contractor is a publicly held corporation or a private company that files an annual report on Form 10-K with the Securities and Exchange Commission, it shall be sufficient for purposes of providing data for each of the officers and directors of the corporation or company to file with the director the most recent annual report on Form 10-K that is filed with the Securities and Exchange Commission.
(b)A service contractor who does not operate a place of business in this state but who sells, issues, or administers service contracts in this state, shall hold a valid registration issued by the bureau and shall pay the registration fee required by this chapter as if they had a place of business in this state.
(c)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 10.Section 9832.5 of the Business and Professions Code is amended to read:9832.5.(a)Registrations issued under this chapter shall expire no more than 12 months after the issue date. The expiration date of registrations shall be set by the director in a manner to best distribute renewal procedures throughout the year.
(b)To renew an unexpired registration, the service contractor shall, on or before the expiration date of the registration, apply for renewal on a form prescribed by the director, and pay the renewal fee prescribed by this chapter.
(c)To renew an expired registration, the service contractor shall apply for renewal on a form prescribed by the director, pay the renewal fee in effect on the last regular renewal date, and pay all accrued and unpaid delinquency and renewal fees. The bureau may impose conditions on a registration issued pursuant to this subdivision.
(d)Renewal is effective on the date that the application is filed, the renewal fee is paid, and all delinquency fees are paid.
(e)For purposes of implementing the distribution of the renewal of registrations throughout the year, the director may extend, by not more than six months, the date fixed by law for renewal of a registration, except that, in that event, any renewal fee that may be involved shall be prorated in such a manner that no person shall be required to pay a greater or lesser fee than would have been required had the change in renewal dates not occurred.
(f)A registration that is not renewed within six years of its expiration shall be canceled, but if the holder of the registration submits a new application and meets all of the following requirements, the registration may be reissued or reinstated:
(1)No fact, circumstance, or condition exists which would justify denial of registration under Section 480.
(2)The registrant pays all renewal, delinquency, and penalty fees that have accrued since the date on which the registration was last renewed.
(g)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 11.Section 9847.5 of the Business and Professions Code is amended to read:9847.5.(a)Each service contractor shall maintain those records as are required by the regulations adopted to carry out the provisions of this chapter for a period of at least three years. These records shall be open for reasonable inspection by the director or other law enforcement officials.
(b)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 12.Section 9849 of the Business and Professions Code, as amended by Section 81 of Chapter 625 of the Statutes of 2022, is amended to read:9849.(a)The expiration of a valid registration shall not deprive the director of jurisdiction to proceed with any investigation or hearing on a cease and desist order against a service dealer or service contractor or to render a decision to suspend, revoke, or place on probation a registration.
(b)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 13.Section 9849 of the Business and Professions Code, as amended by Section 82 of Chapter 625 of the Statutes of 2022, is amended to read:9849.(a)The expiration of a valid registration shall not deprive the director of jurisdiction to proceed with any investigation or hearing on a cease and desist order against a service dealer or to render a decision to suspend, revoke, or place on probation a registration.
(b)This section shall become operative on January 1, 2028.
SEC. 14.Section 9851 of the Business and Professions Code, as amended by Section 83 of Chapter 625 of the Statutes of 2022, is amended to read:9851.(a)The superior court in and for the county wherein any person carries on, or attempts to carry on, business as a service dealer or service contractor in violation of the provisions of this chapter, or any regulation thereunder, shall, on application of the director, issue an injunction or other appropriate order restraining that conduct.
(b)The proceedings under this section shall be governed by Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure, except that the director shall not be required to allege facts necessary to show or tending to show lack of an adequate remedy at law or irreparable injury.
(c)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 15.Section 9851 of the Business and Professions Code, as amended by Section 84 of Chapter 625 of the Statutes of 2022, is amended to read:9851.(a)The superior court in and for the county wherein any person carries on, or attempts to carry on, business as a service dealer in violation of the provisions of this chapter, or any regulation thereunder, shall, on application of the director, issue an injunction or other appropriate order restraining that conduct.
(b)The proceedings under this section shall be governed by Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure, except that the director shall not be required to allege facts necessary to show or tending to show lack of an adequate remedy at law or irreparable injury.
(c)This section shall become operative on January 1, 2028.
SEC. 16.Section 9853 of the Business and Professions Code, as amended by Section 85 of Chapter 625 of the Statutes of 2022, is amended to read:9853.(a)A plea or verdict of guilty or a conviction following a plea of nolo contendere made to a charge substantially related to the qualifications, functions, and duties of a service dealer or service contractor is deemed to be a conviction within the meaning of this article. The director may suspend, revoke, or place on probation a registration, or may deny registration, when the time for appeal has elapsed, or the judgment of conviction has been affirmed on appeal or when an order granting probation is made suspending the imposition of sentence, irrespective of a subsequent order under Section 1203.4 of the Penal Code, allowing that person to withdraw their plea of guilty and to enter a plea of not guilty, or setting aside the verdict of guilty, or dismissing the accusation, information, or indictment.
(b)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 17.Section 9853 of the Business and Professions Code, as amended by Section 86 of Chapter 625 of the Statutes of 2022, is amended to read:9853.(a)A plea or verdict of guilty or a conviction following a plea of nolo contendere made to a charge substantially related to the qualifications, functions, and duties of a service dealer is deemed to be a conviction within the meaning of this article. The director may suspend, revoke, or place on probation a registration, or may deny registration, when the time for appeal has elapsed, or the judgment of conviction has been affirmed on appeal or when an order granting probation is made suspending the imposition of sentence, irrespective of a subsequent order under Section 1203.4 of the Penal Code allowing that person to withdraw their plea of guilty and to enter a plea of not guilty, or setting aside the verdict of guilty, or dismissing the accusation, information, or indictment.
(b)This section shall become operative January 1, 2028.
SEC. 18.Section 9855 of the Business and Professions Code is amended to read:9855.The definitions used in this section shall govern the construction and terms as used in this chapter:
(a)Service contract means a contract in writing to perform, over a fixed period of time or for a specified duration, services relating to the maintenance, replacement, or repair of consumer goods and may include provisions for incidental payment of indemnity under limited circumstances, including, but not limited to, power surges, food spoilage, or accidental damage from handling. Service contract shall not include a contract in writing to maintain structural wiring associated with the delivery of cable, telephone, or other broadband communications services. Service contract shall not include a contract in which a consumer agrees to pay a provider of vision care services for a discount on optical products or contact lenses for a specified duration.
(b)Service contract administrator or administrator means a person who performs or arranges the collection, maintenance, or disbursement of moneys to compensate any party for claims or repairs pursuant to a service contract, and who also performs or arranges any of the following activities on behalf of service contract sellers:
(1)Providing service contract sellers with service contract forms.
(2)Participating in the adjustment of claims arising from service contracts.
(3)Arranging on behalf of service contract sellers the insurance required by Section 9855.2.
A service contract administrator shall not be an obligor on a service contract unless all service contracts under which the service contract administrator is obligated to perform are insured under a service contract reimbursement insurance policy.
(c)(1)Service contract seller or seller means a person who sells or offers to sell a service contract to a service contractholder, including a person who is the obligor under a service contract sold by the seller, manufacturer, or repairer of the product covered by the service contract.
(2)Service contract seller or seller also means a third party, including an obligor, who is not the seller, manufacturer, or repairer of the product. However, a third party shall not be an obligor on a service contract unless the obligor obtains a service contract reimbursement insurance policy for all service contracts under which the third party is obligated under the terms of a service contract.
(3)Service contract seller or seller shall not include the following:
(A)A bank or bank holding company, or the subsidiary or affiliate of either, or a financial institution, licensed under state or federal law, selling or offering to sell a service contract unless that entity is financially and legally obligated under the terms of a service contract.
(B)An electrical device manufacturer or electrical contractor who constructs, installs, or services electrical devices, which include any unit of an electrical system intended to carry electrical energy as part of a buildings electrical system, including raceways, conductors, invertors, conduit, wires, switches, or other similar devices.
(d)Service contractholder means a person who purchases or receives a service contract from a service contract seller.
(e)Service contractor means a service contract administrator or a service contract seller.
(f)Service contract reimbursement insurance policy means a policy of insurance issued by an insurer admitted to do business in this state providing coverage for all obligations and liabilities incurred by a service contract seller under the terms of the service contracts sold in this state by the service contract seller to a service contractholder. The service contract reimbursement insurance policy shall either cover all service contracts sold or specifically cover those contracts sold to residents of the State of California.
(g)Obligor is the entity financially and legally obligated under the terms of a service contract.
(h)Optical products means prescription and nonprescription eyewear. Optical products shall not include contact lenses of any kind.
(i)The terms manufacturer, retail seller, retailer, and sale shall have the same meanings ascribed to them in Section 1791 of the Civil Code.
(j)Consumer goods means any new or used product or part thereof that is used, bought, or leased for use primarily for personal, family, or household purposes, including assistive devices.
(k)This section shall become operative on January 1, 2020.SEC. 18.SEC. 19.Section 9855.9 of the Business and Professions Code is amended to read:9855.9.This article shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 19.SEC. 20.Section 9860 of the Business and Professions Code, as amended by Section 88 of Chapter 625 of the Statutes of 2022, is amended to read:9860.(a)The director shall establish procedures for accepting complaints from the public against any service dealer or service contractor.
(b)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 20.SEC. 21.Section 9860 of the Business and Professions Code, as amended by Section 89 of Chapter 625 of the Statutes of 2022, is amended to read:9860.(a)The director shall establish procedures for accepting complaints from the public against any service dealer.
(b)This section shall become operative on January 1, 2028.
SEC. 21.SEC. 22.Section 9862.5 of the Business and Professions Code is amended to read:9862.5.(a)If a complaint indicates a possible violation of this chapter or of the regulations adopted pursuant to this chapter, the director may advise the service contractor of the contents of the complaint and, if the service contractor is so advised, the director shall make a summary investigation of the facts after the service contractor has had reasonable opportunity to reply thereto.
(b)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 22.SEC. 23.Section 9863 of the Business and Professions Code, as amended by Section 91 of Chapter 625 of the Statutes of 2022, is amended to read:9863.(a)If, upon summary investigation, it appears probable to the director that a violation of this chapter, or the regulations thereunder, has occurred, the director, in their discretion, may suggest measures that in the directors judgment would compensate the complainant for the damages they suffered as a result of the alleged violation. If the service dealer or service contractor accepts the directors suggestions and performs accordingly, the director shall give that fact due consideration in any subsequent disciplinary proceeding. If the service dealer or service contractor declines to abide by the suggestions of the director, the director may investigate further and may institute disciplinary proceedings in accordance with the provisions of this chapter.
(b)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 23.SEC. 24.Section 9863 of the Business and Professions Code, as amended by Section 92 of Chapter 625 of the Statutes of 2022, is amended to read:9863.(a)If, upon summary investigation, it appears probable to the director that a violation of this chapter, or the regulations thereunder, has occurred, the director, in their discretion, may suggest measures that in the directors judgment would compensate the complainant for the damages they suffered as a result of the alleged violation. If the service dealer accepts the directors suggestions and performs accordingly, the director shall give that fact due consideration in any subsequent disciplinary proceeding. If the service dealer declines to abide by the suggestions of the director, the director may investigate further and may institute disciplinary proceedings in accordance with the provisions of this chapter.
(b)This section shall become operative on January 1, 2028.
SEC. 24.SEC. 25.Section 9870 of the Business and Professions Code is amended to read:9870.All fees collected pursuant to this chapter shall be paid into the State Treasury to the credit of the Household Goods and Services Fund, which fund is hereby created.
SEC. 25.SEC. 26.Section 9871 of the Business and Professions Code is amended to read:9871.The director shall report to the State Controller at the beginning of each month, for the month preceding, the amount and source of all revenue received by the bureau pursuant to this chapter, and at that time shall pay the entire amount thereof into the State Treasury for credit to the Household Goods and Services Fund.
SEC. 26.SEC. 27.Section 9872 of the Business and Professions Code is amended to read:9872.The money in the Household Goods and Services Fund necessary for the administration of the bureau and the administration of this chapter shall be used for those purposes.
SEC. 27.SEC. 28.Section 9873 of the Business and Professions Code, as amended by Section 93 of Chapter 625 of the Statutes of 2022, is amended to read:9873.The fees prescribed by this chapter shall be set by the director by regulation, according to the following schedule:
(a)(1)The initial registration fee for an electronic repair industry service dealer or for an appliance repair industry service dealer is not more than two hundred five dollars ($205) for each place of business in this state. The initial registration fee for a service contractor is not more than ninety-five dollars ($95) for each place of business in this state.
(2)The initial registration fee for a person who engages in business as both an electronic repair industry service dealer and an appliance repair industry service dealer is not more than four hundred five dollars ($405) for each place of business in this state. The initial registration fee for a person who is a service contractor and engages in business as either an electronic repair industry service dealer or an appliance repair industry service dealer is not more than three hundred dollars ($300) for each place of business in this state.
(3)The initial registration fee for a person who engages in both the electronic repair industry and the appliance repair industry as a service dealer and is a service contractor is not more than five hundred dollars ($500) for each place of business in this state.
(4)A service dealer or service contractor who does not operate a place of business in this state, but engages in the electronic repair industry or the appliance repair industry, or sells, issues, or administers service contracts in this state, shall pay the registration fee specified herein as if that service dealer or service contractor had a place of business in this state.
(b)(1)The annual registration renewal fee for an electronic repair industry service dealer or for an appliance repair industry service dealer is not more than two hundred five dollars ($205) for each place of business in this state, if renewed prior to its expiration date. The annual registration renewal fee for a service contractor is ninety-five dollars ($95) for each place of business in this state, if renewed prior to its expiration date.
(2)The annual renewal fee for a service dealer who engages in the business as both an electronic repair industry service dealer and an appliance repair industry service dealer is not more than four hundred dollars ($400) for each place of business in this state.
(3)The annual renewal fee for a service dealer who engages in the electronic repair industry and the appliance repair industry and is a service contractor is not more than four hundred seventy-five dollars ($475) for each place of business in this state.
(4)A service dealer or service contractor who does not operate a place of business in this state, but who engages in the electronic repair industry or the appliance repair industry, or sells or issues service contracts in this state, shall pay the renewal fee specified herein as if that service dealer or service contractor had a place of business in this state.
(c)The delinquency fee is an amount equal to 50 percent of the renewal fee for a license in effect on the date of renewal of the license, except as otherwise provided in Section 163.5.
(d) This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 28.SEC. 29.Section 9873 of the Business and Professions Code, as amended by Section 94 of Chapter 625 of the Statutes of 2022, is amended to read:9873.The fees prescribed by this chapter shall be set by the director by regulation, according to the following schedule:
(a)The initial registration fee for an electronic repair industry service dealer or for an appliance repair industry service dealer is not more than two hundred five dollars ($205) for each place of business in this state. The initial registration fee for a person who engages in business as both an electronic repair industry service dealer and an appliance repair industry service dealer is not more than four hundred five dollars ($405).
(b)The annual registration renewal fee for an electronic repair industry service dealer or for an appliance repair industry service dealer is not more than two hundred five dollars ($205) for each place of business in this state, if renewed prior to its expiration date. The annual renewal fee for a service dealer who engages in the business as both an electronic repair industry service dealer and an appliance repair industry service dealer is not more than four hundred dollars ($400).
(c)The delinquency fee is an amount equal to 50 percent of the renewal fee for a license in effect on the date of renewal of the license, except as otherwise provided in Section 163.5.
(d)This section shall become operative on January 1, 2028.
SEC. 29.SEC. 30.Section 9874 of the Business and Professions Code is amended to read:9874.All salaries, expenses, or costs incurred or sustained pursuant to this chapter shall be payable only out of the Household Goods and Services Fund.
SEC. 30.SEC. 31.Section 9874.5 is added to the Business and Professions Code, to read:9874.5.(a)All moneys in the Electronic and Appliance Repair Fund on July 1, 2024, shall be transferred to the Household Goods and Services Fund on that date. by July 1, 2026. On July 1, 2026, the Electronic and Appliance Repair Fund shall be abolished.
(b)This section shall remain in effect only until December 31, 2024, 2026, and as of that date is repealed.
SEC. 31.SEC. 32.Section 19002 of the Business and Professions Code is amended to read:19002.Person includes any individual, partnership, association, firm, auctioneer, trust, limited liability company, and corporation, and the agents, servants, and employees of any of them.
SEC. 32.SEC. 33.Section 19063 of the Business and Professions Code is amended to read:19063.The bureau may refuse to issue any license provided for in this chapter to any individual:
(a)Who has had any license issued to them revoked, or whose license is under suspension, or who has failed to renew their license while it was under suspension.
(b)If any license of a partnership or limited liability company of which they are or were a member, or of a corporation of which they are or were an officer or director, or of a firm or association of which they are or were an officer or of which they are or were acting in a managerial capacity, has had any license issued to it revoked or suspended, and while acting as a member, officer, director, or in a managerial capacity they participated in any of the prohibited acts for which the license was revoked or suspended.
SEC. 33.SEC. 34.Section 19064 of the Business and Professions Code is amended to read:19064.The bureau may refuse to issue any license provided for in this chapter to any partnership, corporation, limited liability company, firm, or association:
(a)Who has had any license issued to it revoked, or whose license is under suspension, or who has failed to renew its license while it was under suspension.
(b)If any member of the partnership, or any officer or director of the corporation, or any officer or person acting in a managerial capacity of the firm or association has had any license issued to them revoked, or whose license is under suspension, or who has failed to renew their license while it was under suspension.
(c)If any member of the limited liability company or of the partnership, or any officer or director of the corporation, or any officer or person acting in a managerial capacity of the firm or association, was either a member of any limited liability company or of any partnership, or an officer or director of any corporation, or an officer or person acting in a managerial capacity of any firm or association, whose license has been revoked, or whose license is under suspension, or who failed to renew a license while it was under suspension, and while acting as a member, officer, director, or person acting in a managerial capacity participated in any of the prohibited acts for which any license was revoked or suspended.
SEC. 34.SEC. 35.Section 19094 of the Business and Professions Code is amended to read:19094.(a)For the purposes of this section, the following definitions shall apply:
(1)Component means the separate constituent parts of upholstered furniture sold in California, as identified in Technical Bulletin 117-2013, specifically cover fabrics, barrier materials, resilient filling materials, and decking materials.
(2)Covered products means any flexible polyurethane foam or upholstered or reupholstered furniture sold in California that is required to meet the test requirements set forth in Technical Bulletin 117-2013, entitled Requirements, Test Procedure and Apparatus for Testing the Smolder Resistance of Materials Used in Upholstered Furniture.
(3)Flame-retardant chemical means any chemical or chemical compound for which a functional use is to resist or inhibit the spread of fire. Flame-retardant Flame retardant chemicals include, but are not limited to, halogenated, phosphorous-based, nitrogen-based, and nanoscale flame retardants, flame-retardant chemicals listed as designated chemicals pursuant to Section 105440 of the Health and Safety Code, and any chemical or chemical compound for which flame retardant appears on the substance Safety Data Sheet (SDS) pursuant to Section 1910.1200(g) of Title 29 of the Code of Federal Regulations.
(4)Chemical means either of the following:
(A)An organic or inorganic substance of a particular molecular identity, including any combination of those substances occurring, in whole or in part, as a result of a chemical reaction or occurring in nature, and any element, ion, or uncombined radical, and any degradate, metabolite, or reaction product of a substance with a particular molecular identity.
(B)A chemical ingredient, which means a substance comprising one or more substances described in subparagraph (A).
(5)Molecular identity means the substances properties listed below:
(A)Agglomeration state.
(B)Bulk density.
(C)Chemical composition, including surface coating.
(D)Crystal structure.
(E)Dispersability.
(F)Molecular structure.
(G)Particle density.
(H)Particle size, size distribution, and surface area.
(I)Physical form and shape, at room temperature and pressure.
(J)Physicochemical properties.
(K)Porosity.
(L)Solubility in water and biologically relevant fluids.
(M)Surface charge.
(N)Surface reactivity.
(6)Added flame-retardant flame retardant chemicals means flame-retardant chemicals that are present in any covered product or component thereof at levels above 1,000 parts per million.
(7)Department means the Department of Toxic Substances Control.
(8)Consumer Price Index means the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics.
(b)(1)A manufacturer of covered products shall indicate whether or not the product contains added flame-retardant flame retardant chemicals by including the following flame-retardant chemical statement on the label described in Section 1374.3 of Title 4 of the California Code of Regulations for covered products:
The upholstery materials in this product:
_____contain added flame-retardant flame retardant chemicals
_____contain NO added flame-retardant flame retardant chemicals
The State of California has updated the flammability standard and determined that the fire safety requirements for this product can be met without adding flame-retardant flame retardant chemicals. The state has identified many flame-retardant flame retardant chemicals as being known to, or strongly suspected of, adversely impacting human health or development.
A manufacturer of covered products shall indicate the absence or presence of added flame-retardant chemicals by placing an X in one of the appropriate blanks.
(2)This statement shall be included in the label described in Section 1374.3 of Title 4 of the California Code of Regulations in accordance with the bureaus regulations for that label. The statement need not be in all capital letters, and shall follow the statement required by Section 1374.3 of Title 4 of the California Code of Regulations.
(c)(1)The bureau shall ensure compliance with the labeling requirements in this section.
(2)(A)The bureau shall provide the Department of Toxic Substances Control with a selection of samples from covered products marked contain NO added flame-retardant flame retardant chemicals for testing for the presence of added flame-retardant flame retardant chemicals. The samples shall be from the components identified in paragraph (1) of subdivision (a). The bureau shall select samples based on consultation with the department, taking into account a range of manufacturers and types of covered products. The bureau and the department shall consult on the tests to be conducted by the department. The department shall provide the results of any completed test to the bureau. The bureau shall reimburse the department for the cost of testing for the presence of added flame-retardant flame retardant chemicals in covered products marked contain NO added flame-retardant flame retardant chemicals.
(B)No later than August 1 of each fiscal year, the bureau shall assess available resources and determine the number of tests to be conducted in the corresponding fiscal year, pursuant to this subparagraph.
(3)(A)If the departments testing shows that a covered product labeled as contain NO added flame-retardant flame retardant chemicals is mislabeled because it contains added flame-retardant chemicals, the bureau may assess fines for violations against manufacturers of the covered product and component manufacturers to be held jointly and severally liable for the violation.
(B)A fine for a violation of this subparagraph relating to mislabeling shall be assessed in accordance with the factors described in subdivision (d) and the following schedule:
(i)The fine for the first violation shall be not less than one thousand dollars ($1,000) but not more than two thousand five hundred dollars ($2,500).
(ii)The fine for the second violation shall be not less than two thousand five hundred dollars ($2,500) but not more than five thousand dollars ($5,000).
(iii)The fine for the third violation shall be not less than five thousand dollars ($5,000) but not more than seven thousand five hundred dollars ($7,500).
(iv)The fine for any subsequent violation shall be not less than seven thousand five hundred dollars ($7,500) but not more than ten thousand dollars ($10,000).
(C)The fines in paragraph (B) shall replace any other fines in this article for a violation of the testing requirements of this section. This clause does not alter or amend any other penalty otherwise imposed by this article.
(D)If the departments testing shows that a covered product labeled as contain NO added flame-retardant flame retardant chemicals is mislabeled because it contains added flame-retardant flame retardant chemicals, in addition to a fine or any other request, the bureau may request that the label required by subdivision (b) for covered products that belong to the same stock keeping unit (SKU) currently produced by the manufacturer be corrected to reflect that flame-retardant flame retardant chemicals are added to the covered product.
(E)If the departments testing shows that a covered product labeled as contain NO added flame-retardant flame retardant chemicals is mislabeled because it contains added flame-retardant flame retardant chemicals, in addition to a fine or any other request, the bureau may request additional testing of more products belonging to the same stock keeping unit (SKU) at the manufacturers expense to verify the accuracy of the label required by subdivision (b) for covered products if the manufacturer wishes to retain the contain NO added flame-retardant chemicals designation on the label required by subdivision (b).
(d)(1)The bureau shall make information about any citation issued pursuant to this section available to the public on its internet website.
(2)In determining the amount of the fine for violations of this section, the bureau shall consider the following factors:
(A)The nature and severity of the violation.
(B)The good or bad faith of the cited person.
(C)The history of previous violations.
(D)Evidence that the violation was willful.
(E)The extent to which the cited person or entity has cooperated with the bureau.
(3)(A)The bureau shall adjust all minimum and maximum fines imposed by this section for inflation every five years.
(B)The adjustment shall be equivalent to the percentage, if any, that the Consumer Price Index at the time of adjustment exceeds the Consumer Price Index at the time this section goes into effect. Any increase determined under this paragraph shall be rounded as follows:
(i)In multiples of ten dollars ($10) in the case of penalties less than or equal to one hundred dollars ($100).
(ii)In multiples of one hundred dollars ($100) in the case of penalties greater than one hundred dollars ($100) but less than or equal to one thousand dollars ($1,000).
(iii)In multiples of one thousand dollars ($1,000) in the case of penalties greater than one thousand dollars ($1,000).
(4)It shall be the duty of the bureau to receive complaints from consumers concerning covered products sold in California.
(e)The bureau may adopt regulations pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) to carry out this section.
SEC. 35.SEC. 36.Section 19174 of the Business and Professions Code is amended to read:19174.All fees collected under this chapter shall be reported to the Controller and paid to the Treasurer and credited to the Household Goods and Services Fund, to be expended only for the purposes of the bureau and in carrying out this chapter.
SEC. 36.SEC. 37.Section 19174.5 is added to the Business and Professions Code, to read:19174.5.(a)All moneys in the Home Furnishings and Thermal Insulation Fund on July 1, 2024, shall be transferred to the Household Goods and Services Fund on that date. by July 1, 2026. On July 1, 2026, the Home Furnishing and Thermal Insulation Fund shall be abolished.
(b)This section shall remain in effect only until December 31, 2024, 2026, and as of that date is repealed.
SEC. 37.SEC. 38.Section 19211 of the Business and Professions Code is amended to read:19211.Any person who has been denied a license, or who has had their license revoked, or whose license is under suspension, or who has failed to renew their license while it was under suspension, or any person who has been a member of any limited liability company or of any partnership, or an officer or director of any corporation, or an officer or person acting in a managerial capacity of any firm or association, whose license has been revoked, or whose license is under suspension, or who has failed to renew a license while it was under suspension, and while acting as a member, officer, director, or person acting in a managerial capacity, participated in any of the prohibited acts for which the license was suspended, or revoked, shall be prohibited from serving as a member of any licensed limited liability company or of any licensed partnership, or as an officer or director of any licensed corporation, or as an officer or person acting in a managerial capacity of any licensed firm or association, and the employment, election, or association of a person in this capacity by a licensee shall constitute grounds for disciplinary action against the licensee.
SEC. 38.SEC. 39.Section 19212 of the Business and Professions Code is amended to read:19212.The performance by any partnership, limited liability company, corporation, firm, or association of any act or omission constituting a cause for disciplinary action, likewise constitutes a cause for disciplinary action against any licensee who is a member of that partnership or limited liability company, or an officer or director of that corporation, or an officer or person acting in a managerial capacity of that firm or association, if the licensee participated in the prohibited act or omission.
SEC. 39.SEC. 40.Section 19214 of the Business and Professions Code is amended to read:19214.Any person who violates or proposes to violate any provision of this chapter relating to insulation standards may be enjoined by any court of competent jurisdiction. The court may make those orders or judgments, including the appointment of a receiver, as may be necessary to prevent the use or employment by any person of any practices which violate this chapter, or which may be necessary to restore to any person in interest any money or property, real or personal, which may have been acquired by means of any practice which violates any provision of this chapter.
Actions for injunction under this section may be prosecuted by the Attorney General or any district attorney, county counsel, city attorney, or city prosecutor in this state in the name of the people of the State of California upon their own motion or upon the complaint of any board, officer, person, corporation, association, partnership, limited liability company, or by any person acting for the interests of itself, its members, or the general public.
(a)A person who violates any provision of this chapter shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation, which shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the Attorney General or by any district attorney, county counsel, city attorney, or city prosecutor in any court of competent jurisdiction. The unit for a separate and distinct offense regarding insulation in violation of this chapter is each and every bag, bale, package, roll, or other container sold, offered for sale, or possessed with intent to sell or install contrary to the provisions of this chapter.
(b)If the action is brought by the Attorney General, one-half of the penalty collected shall be paid to the treasurer of the county in which the judgment was entered, and one-half to the Treasurer. If brought by a district attorney or county counsel, the entire amount of penalty collected shall be paid to the treasurer of the county in which the judgment was entered. If brought by a city attorney or city prosecutor, one-half of the penalty shall be paid to the treasurer of the county and one-half to the city.
(c)If the action is brought at the request of the bureau, the court shall determine the reasonable expenses incurred by the bureau in the investigation and prosecution of the action.
Before any penalty collected is paid out pursuant to subdivision (b), the amount of the reasonable expenses incurred by the bureau shall be paid to the Treasurer.
SEC. 40.SEC. 41.Section 19225.5 of the Business and Professions Code is amended to read:19225.5.For purposes of this chapter, unless the context otherwise requires, the following provisions shall apply:
(a)Broker means a person engaged by others in the act of arranging, for compensation, the intrastate transportation of used household goods by a motor vehicle over the highways of this state for, or on behalf of, a shipper, a consignor, or a consignee.
(b)Bureau refers to the Bureau of Household Goods and Services, as established in Section 9810.
(c)Chief refers to the chief of the bureau.
(d)Corporation includes a corporation, a company, a limited liability company, an association, and a joint stock association.
(e)Department refers to the Department of Consumer Affairs.
(f)Director refers to the Director of Consumer Affairs.
(g)Fund means the Household Goods and Services Fund established pursuant to Section 9870.
(h)Household mover includes every corporation or person, their lessees, trustee, receivers, or trustees appointed by any court whatsoever, engaged in the permitted or unpermitted transportation for compensation or hire as a business by means of a motor vehicle or motor vehicles being used in the transportation of used household goods and personal effects over any public highway in this state. A broker, as defined in subdivision (a), shall be considered a household mover. The Legislature intends household mover to have the same meaning as household goods carrier in former Section 5109 of the Public Utilities Code, as that section read on June 30, 2018.
(i)Inspector refers to an inspector either employed by, or under contract to, the bureau.
(j)Motor vehicle means every motor truck, tractor, or other self-propelled vehicle used for transportation of property over the public highways, other than upon fixed rails or tracks, and any trailer, semitrailer, dolly, or other vehicle drawn thereby.
(k)Owner, with respect to a motor vehicle used in the transportation of property for compensation by a household mover, means the corporation or person who is registered with the Department of Motor Vehicles as the owner of the vehicle, or who has a legal right to possession of the vehicle pursuant to a lease or rental agreement.
(l)Person includes an individual, a firm, or a partnership.
(m)Public highway includes every public street, road, or highway in this state.
SEC. 41.SEC. 42.Section 19229 of the Business and Professions Code is amended to read:19229.(a)Moneys in the fund shall be used, upon appropriation by the Legislature, by the bureau for the administration of this chapter.
(b)Except as otherwise provided in this chapter, all moneys, including fines or penalties imposed under this chapter, collected pursuant to this chapter shall be deposited into the fund.
SEC. 42.SEC. 43.Section 19229.5 is added to the Business and Professions Code, to read:19229.5.(a)All moneys in the Household Movers Fund on July 1, 2024, shall be transferred to the Household Goods and Services Fund on that date. by July 1, 2026. On July 1, 2026, the Household Movers Fund shall be abolished.
(b)This section shall remain in effect only until December 31, 2024, 2026, and as of that date is repealed.
SEC. 43.SEC. 44.Section 19239 of the Business and Professions Code is amended to read:19239.(a)Before a permit is issued, the bureau shall require the applicant to establish ability and reasonable financial responsibility to initiate the proposed operations. The bureau shall require the applicant to establish their knowledge and ability to engage in business as a household mover by examination. The examination may be written or oral, or in the form of a demonstration of skill, or any combination of these, and any investigation of character, experience, and any tests of technical knowledge and manual skill that the bureau determines to be appropriate may be employed. In any examination, the qualification of the applicant shall be determined by an appraisal made by a member of the bureaus staff. The criteria used by the bureau staff in making the required appraisal to determine whether the applicant has met the qualifications shall be established by the bureau by rule or regulation, in accordance with the provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. An applicant who has been determined to be unqualified may establish their qualifications through a subsequent examination, but no subsequent examination shall be taken prior to 30 days from the date when the applicant was found to be unqualified. If the staff member determines that the applicant is not qualified and denies the application, the bureau shall notify the applicant in writing. Within 30 days of service of the notice, the applicant may file a written request with the bureau for a hearing on the denial. Upon receipt of a timely filed request, the bureau shall request that the matter be set for a hearing. The hearing shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director shall have all the powers granted therein. If the staff member determines that the applicant is qualified, the bureau may issue a permit without a hearing.
(b)An applicant may qualify in one of the following ways:
(1)If an individual, they may qualify by personal examination or by examination of their responsible managing employee.
(2)If a partnership or corporation, or any other type of business organization, it may qualify by examination of the responsible managing officer, an employee who works at least 32 hours per week, or a partner of the applicant firm.
(c)If the individual qualified by examination ceases to be connected with the permitholder, the permitholder shall notify the bureau in writing within 30 days after the cessation. If notice is given, the permit shall remain in force a reasonable length of time in order that another representative of the applicant may be qualified before the bureau. If the permitholder fails to notify the bureau of the cessation within a 30-day period, at the end of that period the permit shall be automatically suspended.
(d)Each applicant for a permit shall electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice for each owner, partner, officer, and director as a prerequisite to the issuance of a permit to operate as a household mover. The fingerprint images and related information shall be submitted for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and arrests, and information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on their own recognizance, pending trial or appeal.
(1)The Department of Justice shall provide a response to the bureau pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.
(2)The bureau shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.
(3)The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this subdivision.
(e)The bureau may require, as a precondition to the issuance of a permit, the procurement of a performance bond sufficient to facilitate the collection of fines, penalties, and restitution related to enforcement actions that can be taken against the applicant.
(f)The bureau may refuse to issue a permit if it is shown that an applicant or an officer, director, partner, or associate of an applicant has committed any act constituting dishonesty or fraud; committed any act that, if committed by a permitholder, would be grounds for a suspension or revocation of the permit; misrepresented any material fact on the application; or, was convicted of an offense that is substantially related to the qualifications, functions, or duties of the business or profession, except that if the bureau determines that the applicant is otherwise suitable to be issued a permit, and granting the permit would not compromise public safety, the bureau shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the applicant, and shall evaluate the suitability of the applicant to be issued a permit based on the evidence found through the review.
(g)A permit shall not be issued unless it has been shown that the applicant meets one of the following residence requirements:
(1)For an individual, the applicant shall have resided in the State of California for not less than 90 days next preceding the filing of the application.
(2)For a partnership, the partner having the largest percentage interest in the partnership shall have resided in the State of California continuously for not less than 90 days next preceding the filing of the application.
(3)For a limited liability company or a corporation, the applicant shall be a domestic limited liability company or a domestic corporation or shall be qualified to transact business in the State of California as a foreign limited liability company or a foreign corporation at the time of filing the application.
(h)The bureau shall prescribe, amend, and repeal rules in accordance with law for the administration of this section.
(i)If the bureau denies an application, the bureau shall notify the applicant in writing. Within 30 days of service of the notice, the applicant may file a written request with the bureau for a hearing on the denial. Upon receipt of a timely filed request, the bureau shall request that the matter be set for hearing. The hearing shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director shall have all the powers granted therein.
SEC. 44.SEC. 45.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)There is in the State Treasury the Professions and Vocations Fund. The fund shall consist of the following special funds:
(1)Accountancy Fund.
(2)California Architects Board Fund.
(3)Athletic Commission Fund.
(4)Barbering and Cosmetology Contingent Fund.
(5)Cemetery and Funeral Fund.
(6)Contractors License Fund.
(7)State Dentistry Fund.
(8)Home Furnishings and Thermal Insulation Fund.
(9)California Architects Board-Landscape Architects Fund.
(10)Contingent Fund of the Medical Board of California.
(11)Optometry Fund.
(12)Pharmacy Board Contingent Fund.
(13)Physical Therapy Fund.
(14)Private Security Services Fund.
(15)Professional Engineers, Land Surveyors, and Geologists Fund.
(16)Consumer Affairs Fund.
(17)Behavioral Sciences Fund.
(18)Licensed Midwifery Fund.
(19)Court Reporters Fund.
(20)Veterinary Medical Board Contingent Fund.
(21)Vocational Nursing and Psychiatric Technicians Fund.
(22)Electronic and Appliance Repair Fund.
(23)Acupuncture Fund.
(24)Physician Assistant Fund.
(25)Board of Podiatric Medicine Fund.
(26)Psychology Fund.
(27)Respiratory Care Fund.
(28)Speech-Language Pathology and Audiology and Hearing Aid Dispensers Fund.
(29)Board of Registered Nursing Fund.
(30)Animal Health Technician Examining Committee Fund.
(31)State Dental Hygiene Fund.
(32)Structural Pest Control Fund.
(33)Structural Pest Control Education and Enforcement Fund.
(34)Structural Pest Control Research Fund.
(35)Household Movers Fund.
(36)Household Goods and Services Fund.
(b)For accounting and recordkeeping purposes, the Professions and Vocations Fund shall be deemed to be a single special fund, and each of the several special funds therein shall constitute and be deemed to be a separate account in the Professions and Vocations Fund. Each account or fund shall be available for expenditure only for the purposes as are now or may hereafter be provided by law.
(c)This section shall remain in effect only until July 1, 2024, and as of that date is repealed.
SEC. 2.Section 205 is added to the Business and Professions Code, to read:205.(a)There is in the State Treasury the Professions and Vocations Fund. The fund shall consist of the following special funds:
(1)Accountancy Fund.
(2)California Architects Board Fund.
(3)Athletic Commission Fund.
(4)Barbering and Cosmetology Contingent Fund.
(5)Cemetery and Funeral Fund.
(6)Contractors License Fund.
(7)State Dentistry Fund.
(8)California Architects Board-Landscape Architects Fund.
(9)Contingent Fund of the Medical Board of California.
(10)Optometry Fund.
(11)Pharmacy Board Contingent Fund.
(12)Physical Therapy Fund.
(13)Private Security Services Fund.
(14)Professional Engineers, Land Surveyors, and Geologists Fund.
(15)Consumer Affairs Fund.
(16)Behavioral Sciences Fund.
(17)Licensed Midwifery Fund.
(18)Court Reporters Fund.
(19)Veterinary Medical Board Contingent Fund.
(20)Vocational Nursing and Psychiatric Technicians Fund.
(21)Acupuncture Fund.
(22)Physician Assistant Fund.
(23)Board of Podiatric Medicine Fund.
(24)Psychology Fund.
(25)Respiratory Care Fund.
(26)Speech-Language Pathology and Audiology and Hearing Aid Dispensers Fund.
(27)Board of Registered Nursing Fund.
(28)Animal Health Technician Examining Committee Fund.
(29)State Dental Hygiene Fund.
(30)Structural Pest Control Fund.
(31)Structural Pest Control Education and Enforcement Fund.
(32)Structural Pest Control Research Fund.
(33)Household Goods and Services Fund.
(b)For accounting and recordkeeping purposes, the Professions and Vocations Fund shall be deemed to be a single special fund, and each of the several special funds therein shall constitute and be deemed to be a separate account in the Professions and Vocations Fund. Each account or fund shall be available for expenditure only for the purposes as are now or may hereafter be provided by law.
(c)This section shall become operative on July 1, 2024.
SEC. 3.Section 9801 of the Business and Professions Code is amended to read:9801.The following terms as used in this chapter have the meaning expressed in this section:
(a)Person includes a firm, partnership, association, limited liability company, or corporation.
(b)Department means the Department of Consumer Affairs.
(c)Director means the Director of Consumer Affairs.
(d)Bureau means the Bureau of Household Goods and Services.
(e)Chief means the Chief of the Bureau of Household Goods and Services.
(f)Service dealer means a person who, for compensation, engages in, or holds himself or herself themselves out to the public as offering services in the business of:
(1)Repairing, servicing, or maintaining an electronic set normally used or sold for personal, family, household, or home office use.
(2)Installing, repairing, servicing, or maintaining equipment or a burglar alarm system for use in private motor vehicles.
(3)Installing, repairing, servicing, or maintaining television or radio receiver antennas, rotators, and accessories or direct satellite signal receiving equipment located on or adjacent to a residence and not involving a function that is subject to and regulated under the provisions of Chapter 9 (commencing with Section 7000).
(4)Repairing, servicing, or maintaining major appliances.
(g)Equipment for the purposes of this chapter means an electronic set, appliance, antenna, rotator, and accessories.
(h)Electronic set includes, but is not limited to, any television, radio, audio or video recorder or playback equipment, video camera, video game, video monitor, computer system, cellular device, such as a telephone or tablet, photocopier, or facsimile machine facsimile machine, or any other device that depends for its functioning, in whole or in part, on any digital electronic embedded or attached to the product and has a value over ten dollars ($10) and is normally used or sold for personal, family, household, or home office use.
(i)Appliance or major home appliance includes, means any device primarily used for residential purposes, including, but is not limited to, any refrigerator, freezer, range, microwave oven, washer, dryer, dishwasher, trash compactor, ice maker, dehumidifier, residential portable furnace, or room air-conditioner normally used or sold for personal, family, household, or home office use, or for use in private motor vehicles.
(j)Antenna includes, but is not limited to, a resonant device designed especially for the purpose of capturing electromagnetic energy transmitted by direct satellite or commercial radio or television broadcasting facilities. An antenna and its associated accessories are not deemed to be a part of a set and shall be considered, under this section, to be located outside or in the attic of a residence.
(k)Rotator, when used in connection with an antenna installation or repair, includes, but is not limited to, an electromechanical device operated from a remote location to rotate an antenna on a horizontal plane. A rotator and its associated accessories are not deemed to be a part of a set and shall be considered under this section, with the exception of the directional control unit, to be located outside or in the attic of a residence.
(l)Accessories, when used in connection with an antenna or rotator installation or repair, includes, but is not limited to, masts, towers, clamps, guy wires, eye hooks, standoff insulators, roof saddles, vent pipe mounts, chimney mount kits, signal amplifiers/boosters, multiset couplers, transmission lines, control cables, directional control units, and other devices as may be used from time to time to effect installation or repair.
(m)Computer system includes, but is not limited to, a central processing unit that performs data manipulation functions, and any associated peripheral devices, including, but not limited to, keyboards, display terminals, printers, or disk drives.
(n)Video game includes, but is not limited to, any electronic amusement device that utilizes a computer, microprocessor, or similar electronic circuitry and its own cathode ray tube or a television set or a monitor. circuitry.
(o)Direct satellite signal receiving equipment includes, but is not limited to, receivers, down converters, amplifiers, and audio or video processors related to the reception of audio, video, or data signals broadcasted or rebroadcasted by communication satellites located in space.
(p)Electronic repair industry means those activities defined in paragraph (1), (2), or (3) of subdivision (f).
(q)Appliance repair industry means those activities defined in paragraph (4) of subdivision (f).
SECTION 1.SEC. 4.Section 9810 of the Business and Professions Code is amended to read:9810.(a)(1)There is in the Department of Consumer Affairs a Bureau of Household Goods and Services, under the supervision and control of the director. The director shall administer and enforce the provisions of this chapter and Chapter 3 (commencing with Section 19000) and Chapter 3.1 (commencing with Section 19225) of Division 8.
(2)There is a Division of Household Movers within the bureau for purposes of administering Chapter 3.1 (commencing with Section 19225) of Division 8. The Division of Household Movers shall be overseen by the chief of the bureau.
(b)The Governor shall appoint, subject to confirmation by the Senate, a chief of the bureau at a salary to be fixed and determined by the director with the approval of the Director of Finance. The chief shall serve under the direction and supervision of the director and at the pleasure of the Governor.
(c)Every power granted to or duty imposed upon the director under this chapter and Chapter 3 (commencing with Section 19000) and Chapter 3.1 (commencing with Section 19225) of Division 8 may be exercised or performed in the name of the director by a deputy or assistant director or by the chief, subject to conditions and limitations that the director may prescribe.
(d)Whenever the laws of this state refer to the Bureau of Electronic Repair Dealer Registration or the Bureau of Electronic and Appliance Repair, the reference shall be construed to be to the Bureau of Household Goods and Services.
(e)Notwithstanding any other law, the powers and duties of the Bureau of Household Goods and Services, as set forth in this chapter and Chapter 3 (commencing with Section 19000) and Chapter 3.1 (commencing with Section 19225) of Division 8, shall be subject to review by the appropriate policy committees of the Legislature. The review shall be performed as if this chapter and Chapter 3 (commencing with Section 19000) and Chapter 3.1 (commencing with Section 19225) of Division 8 were scheduled to be repealed on January 1, 2028.
SEC. 2.SEC. 5.Section 9812 of the Business and Professions Code is amended to read:9812.The director shall gather evidence of violations of this chapter and of any regulation established hereunder, by any service dealer, whether registered or not, and by any employee, partner, officer, or member of any service dealer. The director shall, on their own initiative, conduct spot check investigations of service dealers throughout the state on a continuous basis, but no less than twice per year.
SEC. 3.SEC. 6.Section 9812.5 of the Business and Professions Code is amended to read:9812.5.The director shall gather evidence of violations of this chapter and of any regulation established hereunder by any service contractor, whether registered or not, and by any employee, partner, officer, or member of any service contractor. The director shall, on their own initiative, conduct spot check investigations of service contractors throughout the state on a continuous basis.
This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 4.SEC. 7.Section 9814 of the Business and Professions Code is amended to read:9814.The director may establish and enforce regulations as may be reasonable for the conduct of service dealers and for the general enforcement of the various provisions of this chapter in the protection of the public. The director may, by regulation, define the scope of the terms described in subdivisions (g) to (q), inclusive, of Section 9801 to include items of the same general nature or class as those enumerated therein. The director shall either make available on its internet website or distribute to each registered service dealer copies of this chapter and of the regulations thereunder. These regulations shall be adopted, amended, or repealed in accordance with the provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
SEC. 5.SEC. 8.Section 9814.5 of the Business and Professions Code is amended to read:9814.5.The director may establish and enforce reasonable regulations for the conduct of service contractors, and for the general enforcement of the various provisions of this chapter in the protection of the public. The director shall either make available on its internet website or distribute to each registered service contractor copies of this chapter and of the regulations adopted under this chapter. Regulations shall be adopted, amended, or repealed in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
SEC. 6.SEC. 9.Section 9830.5 of the Business and Professions Code is amended to read:9830.5.(a)Each service contractor shall pay the fee required by this chapter for each place of business operated by them in this state and shall register with the bureau upon forms prescribed by the director. The forms shall contain sufficient information to identify the service contractor, including name, address, retail sellers permit number, if a permit is required under the Sales and Use Tax Law (Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code), a copy of the certificate of qualification as filed with the Secretary of State if the service contractor is a foreign corporation, and other identifying data to be prescribed by the bureau. If the business is to be carried on under a fictitious name, that fictitious name shall be stated. If the service contractor is a partnership, identifying data shall be stated for each partner. If the service contractor is a private company that does not file an annual report on Form 10-K with the Securities and Exchange Commission, data shall be included for each of the officers and directors of the company as well as for the individual in charge of each place of the service contractors business in the State of California, subject to any regulations the director may adopt. If the service contractor is a publicly held corporation or a private company that files an annual report on Form 10-K with the Securities and Exchange Commission, it shall be sufficient for purposes of providing data for each of the officers and directors of the corporation or company to file with the director the most recent annual report on Form 10-K that is filed with the Securities and Exchange Commission.
(b)A service contractor who does not operate a place of business in this state but who sells, issues, or administers service contracts in this state, shall hold a valid registration issued by the bureau and shall pay the registration fee required by this chapter as if they had a place of business in this state.
(c)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 7.SEC. 10.Section 9832.5 of the Business and Professions Code is amended to read:9832.5.(a)Registrations issued under this chapter shall expire no more than 12 months after the issue date. The expiration date of registrations shall be set by the director in a manner to best distribute renewal procedures throughout the year.
(b)To renew an unexpired registration, the service contractor shall, on or before the expiration date of the registration, apply for renewal on a form prescribed by the director, and pay the renewal fee prescribed by this chapter.
(c)To renew an expired registration, the service contractor shall apply for renewal on a form prescribed by the director, pay the renewal fee in effect on the last regular renewal date, and pay all accrued and unpaid delinquency and renewal fees. The bureau may impose conditions on a registration issued pursuant to this subdivision.
(d)Renewal is effective on the date that the application is filed, the renewal fee is paid, and all delinquency fees are paid.
(e)For purposes of implementing the distribution of the renewal of registrations throughout the year, the director may extend, by not more than six months, the date fixed by law for renewal of a registration, except that, in that event, any renewal fee that may be involved shall be prorated in such a manner that no person shall be required to pay a greater or lesser fee than would have been required had the change in renewal dates not occurred.
(f)A registration that is not renewed within six years of its expiration shall be canceled, but if the holder of the registration submits a new application and meets all of the following requirements, the registration may be reissued or reinstated:
(1)No fact, circumstance, or condition exists which would justify denial of registration under Section 480.
(2)The registrant pays all renewal, delinquency, and penalty fees that have accrued since the date on which the registration was last renewed.
(g)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 8.SEC. 11.Section 9847.5 of the Business and Professions Code is amended to read:9847.5.(a)Each service contractor shall maintain those records as are required by the regulations adopted to carry out the provisions of this chapter for a period of at least three years. These records shall be open for reasonable inspection by the director or other law enforcement officials.
(b)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 9.SEC. 12.Section 9849 of the Business and Professions Code, as amended by Section 81 of Chapter 625 of the Statutes of 2022, is amended to read:9849.(a)The expiration of a valid registration shall not deprive the director of jurisdiction to proceed with any investigation or hearing on a cease and desist order against a service dealer or service contractor or to render a decision to suspend, revoke, or place on probation a registration.
(b)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 10.SEC. 13.Section 9849 of the Business and Professions Code, as amended by Section 82 of Chapter 625 of the Statutes of 2022, is amended to read:9849.(a)The expiration of a valid registration shall not deprive the director of jurisdiction to proceed with any investigation or hearing on a cease and desist order against a service dealer or to render a decision to suspend, revoke, or place on probation a registration.
(b)This section shall become operative on January 1, 2028.
SEC. 11.SEC. 14.Section 9851 of the Business and Professions Code, as amended by Section 83 of Chapter 625 of the Statutes of 2022, is amended to read:9851.(a)The superior court in and for the county wherein any person carries on, or attempts to carry on, business as a service dealer or service contractor in violation of the provisions of this chapter, or any regulation thereunder, shall, on application of the director, issue an injunction or other appropriate order restraining that conduct.
(b)The proceedings under this section shall be governed by Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure, except that the director shall not be required to allege facts necessary to show or tending to show lack of an adequate remedy at law or irreparable injury.
(c)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 12.SEC. 15.Section 9851 of the Business and Professions Code, as amended by Section 84 of Chapter 625 of the Statutes of 2022, is amended to read:9851.(a)The superior court in and for the county wherein any person carries on, or attempts to carry on, business as a service dealer in violation of the provisions of this chapter, or any regulation thereunder, shall, on application of the director, issue an injunction or other appropriate order restraining that conduct.
(b)The proceedings under this section shall be governed by Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure, except that the director shall not be required to allege facts necessary to show or tending to show lack of an adequate remedy at law or irreparable injury.
(c)This section shall become operative on January 1, 2028.
SEC. 13.SEC. 16.Section 9853 of the Business and Professions Code, as amended by Section 85 of Chapter 625 of the Statutes of 2022, is amended to read:9853.(a)A plea or verdict of guilty or a conviction following a plea of nolo contendere made to a charge substantially related to the qualifications, functions, and duties of a service dealer or service contractor is deemed to be a conviction within the meaning of this article. The director may suspend, revoke, or place on probation a registration, or may deny registration, when the time for appeal has elapsed, or the judgment of conviction has been affirmed on appeal or when an order granting probation is made suspending the imposition of sentence, irrespective of a subsequent order under Section 1203.4 of the Penal Code, allowing that person to withdraw their plea of guilty and to enter a plea of not guilty, or setting aside the verdict of guilty, or dismissing the accusation, information, or indictment.
(b)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 14.SEC. 17.Section 9853 of the Business and Professions Code, as amended by Section 86 of Chapter 625 of the Statutes of 2022, is amended to read:9853.(a)A plea or verdict of guilty or a conviction following a plea of nolo contendere made to a charge substantially related to the qualifications, functions, and duties of a service dealer is deemed to be a conviction within the meaning of this article. The director may suspend, revoke, or place on probation a registration, or may deny registration, when the time for appeal has elapsed, or the judgment of conviction has been affirmed on appeal or when an order granting probation is made suspending the imposition of sentence, irrespective of a subsequent order under Section 1203.4 of the Penal Code allowing that person to withdraw their plea of guilty and to enter a plea of not guilty, or setting aside the verdict of guilty, or dismissing the accusation, information, or indictment.
(b)This section shall become operative January 1, 2028.
SEC. 15.SEC. 18.Section 9855.9 of the Business and Professions Code is amended to read:9855.9.This article shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 16.SEC. 19.Section 9860 of the Business and Professions Code, as amended by Section 88 of Chapter 625 of the Statutes of 2022, is amended to read:9860.(a)The director shall establish procedures for accepting complaints from the public against any service dealer or service contractor.
(b)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 17.SEC. 20.Section 9860 of the Business and Professions Code, as amended by Section 89 of Chapter 625 of the Statutes of 2022, is amended to read:9860.(a)The director shall establish procedures for accepting complaints from the public against any service dealer.
(b)This section shall become operative on January 1, 2028.
SEC. 18.SEC. 21.Section 9862.5 of the Business and Professions Code is amended to read:9862.5.(a)If a complaint indicates a possible violation of this chapter or of the regulations adopted pursuant to this chapter, the director may advise the service contractor of the contents of the complaint and, if the service contractor is so advised, the director shall make a summary investigation of the facts after the service contractor has had reasonable opportunity to reply thereto.
(b)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 19.SEC. 22.Section 9863 of the Business and Professions Code, as amended by Section 91 of Chapter 625 of the Statutes of 2022, is amended to read:9863.(a)If, upon summary investigation, it appears probable to the director that a violation of this chapter, or the regulations thereunder, has occurred, the director, in their discretion, may suggest measures that in the directors judgment would compensate the complainant for the damages they suffered as a result of the alleged violation. If the service dealer or service contractor accepts the directors suggestions and performs accordingly, the director shall give that fact due consideration in any subsequent disciplinary proceeding. If the service dealer or service contractor declines to abide by the suggestions of the director, the director may investigate further and may institute disciplinary proceedings in accordance with the provisions of this chapter.
(b)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 20.SEC. 23.Section 9863 of the Business and Professions Code, as amended by Section 92 of Chapter 625 of the Statutes of 2022, is amended to read:9863.(a)If, upon summary investigation, it appears probable to the director that a violation of this chapter, or the regulations thereunder, has occurred, the director, in their discretion, may suggest measures that in the directors judgment would compensate the complainant for the damages they suffered as a result of the alleged violation. If the service dealer accepts the directors suggestions and performs accordingly, the director shall give that fact due consideration in any subsequent disciplinary proceeding. If the service dealer declines to abide by the suggestions of the director, the director may investigate further and may institute disciplinary proceedings in accordance with the provisions of this chapter.
(b)This section shall become operative on January 1, 2028.
SEC. 24.Section 9870 of the Business and Professions Code is amended to read:9870.All fees collected pursuant to this chapter shall be paid into the State Treasury to the credit of the Electronic and Appliance Repair Household Goods and Services Fund, which fund is hereby created.
SEC. 25.Section 9871 of the Business and Professions Code is amended to read:9871.The director shall report to the State Controller at the beginning of each month, for the month preceding, the amount and source of all revenue received by the bureau pursuant to this chapter, and at that time shall pay the entire amount thereof into the State Treasury for credit to the Electronic and Appliance Repair Household Goods and Services Fund.
SEC. 26.Section 9872 of the Business and Professions Code is amended to read:9872.The money in the Electronic and Appliance Repair Household Goods and Services Fund necessary for the administration of the bureau and the administration of this chapter shall be used for such those purposes.
SEC. 21.SEC. 27.Section 9873 of the Business and Professions Code, as amended by Section 93 of Chapter 625 of the Statutes of 2022, is amended to read:9873.The fees prescribed by this chapter shall be set by the director by regulation, according to the following schedule:
(a)(1)The initial registration fee for an electronic repair industry service dealer or for an appliance repair industry service dealer is not more than two hundred five dollars ($205) for each place of business in this state. The initial registration fee for a service contractor is not more than ninety-five dollars ($95) for each place of business in this state.
(2)The initial registration fee for a person who engages in business as both an electronic repair industry service dealer and an appliance repair industry service dealer is not more than four hundred five dollars ($405) for each place of business in this state. The initial registration fee for a person who is a service contractor and engages in business as either an electronic repair industry service dealer or an appliance repair industry service dealer is not more than three hundred dollars ($300) for each place of business in this state.
(3)The initial registration fee for a person who engages in both the electronic repair industry and the appliance repair industry as a service dealer and is a service contractor is not more than five hundred dollars ($500) for each place of business in this state.
(4)A service dealer or service contractor who does not operate a place of business in this state, but engages in the electronic repair industry or the appliance repair industry, or sells, issues, or administers service contracts in this state, shall pay the registration fee specified herein as if that service dealer or service contractor had a place of business in this state.
(b)(1)The annual registration renewal fee for an electronic repair industry service dealer or for an appliance repair industry service dealer is not more than two hundred five dollars ($205) for each place of business in this state, if renewed prior to its expiration date. The annual registration renewal fee for a service contractor is ninety-five dollars ($95) for each place of business in this state, if renewed prior to its expiration date.
(2)The annual renewal fee for a service dealer who engages in the business as both an electronic repair industry service dealer and an appliance repair industry service dealer is not more than four hundred dollars ($400) for each place of business in this state.
(3)The annual renewal fee for a service dealer who engages in the electronic repair industry and the appliance repair industry and is a service contractor is not more than four hundred seventy-five dollars ($475) for each place of business in this state.
(4)A service dealer or service contractor who does not operate a place of business in this state, but who engages in the electronic repair industry or the appliance repair industry, or sells or issues service contracts in this state, shall pay the renewal fee specified herein as if that service dealer or service contractor had a place of business in this state.
(c)The delinquency fee is an amount equal to 50 percent of the renewal fee for a license in effect on the date of renewal of the license, except as otherwise provided in Section 163.5.
(d) This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 22.SEC. 28.Section 9873 of the Business and Professions Code, as amended by Section 94 of Chapter 625 of the Statutes of 2022, is amended to read:9873.The fees prescribed by this chapter shall be set by the director by regulation, according to the following schedule:
(a)The initial registration fee for an electronic repair industry service dealer or for an appliance repair industry service dealer is not more than two hundred five dollars ($205) for each place of business in this state. The initial registration fee for a person who engages in business as both an electronic repair industry service dealer and an appliance repair industry service dealer is not more than four hundred five dollars ($405).
(b)The annual registration renewal fee for an electronic repair industry service dealer or for an appliance repair industry service dealer is not more than two hundred five dollars ($205) for each place of business in this state, if renewed prior to its expiration date. The annual renewal fee for a service dealer who engages in the business as both an electronic repair industry service dealer and an appliance repair industry service dealer is not more than four hundred dollars ($400).
(c)The delinquency fee is an amount equal to 50 percent of the renewal fee for a license in effect on the date of renewal of the license, except as otherwise provided in Section 163.5.
(d)This section shall become operative on January 1, 2028.
SEC. 29.Section 9874 of the Business and Professions Code is amended to read:9874.All salaries, expenses, or costs incurred or sustained pursuant to this chapter shall be payable only out of the Electronic and Appliance Repair Household Goods and Services Fund.
SEC. 30.Section 9874.5 is added to the Business and Professions Code, to read:9874.5.(a)All moneys in the Electronic and Appliance Repair Fund on July 1, 2024, shall be transferred to the Household Goods and Services Fund on that date.
(b)This section shall remain in effect only until December 31, 2024, and as of that date is repealed.
SEC. 31.Section 19002 of the Business and Professions Code is amended to read:19002.Person includes any individual, copartnership, partnership, association, firm, auctioneer, trust, limited liability company, and corporation, and the agents, servants servants, and employees of any of them.
SEC. 32.Section 19063 of the Business and Professions Code is amended to read:19063.The bureau may refuse to issue any license provided for in this chapter to any individual:
(a)Who has had any license issued to him or her them revoked, or whose license is under suspension, or who has failed to renew his or her their license while it was under suspension.
(b)If any license of a partnership or limited liability company of which he or she is or was they are or were a member, or of a corporation of which he or she is or was they are or were an officer or director, or of a firm or association of which he or she is or was they are or were an officer or of which he or she is or was they are or were acting in a managerial capacity, has had any license issued to it revoked or suspended, and while acting as a member, officer, director, or in a managerial capacity he or she they participated in any of the prohibited acts for which the license was revoked or suspended.
SEC. 33.Section 19064 of the Business and Professions Code is amended to read:19064.The bureau may refuse to issue any license provided for in this chapter to any partnership, corporation, limited liability company, firm, or association:
(a)Who has had any license issued to it revoked, or whose license is under suspension, or who has failed to renew its license while it was under suspension.
(b)If any member of the partnership, or any officer or director of the corporation, or any officer or person acting in a managerial capacity of the firm or association has had any license issued to him or her them revoked, or whose license is under suspension, or who has failed to renew his or her their license while it was under suspension.
(c)If any member of the limited liability company or of the partnership, or any officer or director of the corporation, or any officer or person acting in a managerial capacity of the firm or association, was either a member of any limited liability company or of any partnership, or an officer or director of any corporation, or an officer or person acting in a managerial capacity of any firm or association, whose license has been revoked, or whose license is under suspension, or who failed to renew a license while it was under suspension, and while acting as such a member, officer, director, or person acting in a managerial capacity participated in any of the prohibited acts for which any such license was revoked or suspended.
SEC. 34.Section 19094 of the Business and Professions Code is amended to read:19094.(a)For the purposes of this section, the following definitions shall apply:
(1)Component means the separate constituent parts of upholstered furniture sold in California, as identified in Technical Bulletin 117-2013, specifically cover fabrics, barrier materials, resilient filling materials, and decking materials.
(2)Covered products means any flexible polyurethane foam or upholstered or reupholstered furniture sold in California that is required to meet the test requirements set forth in Technical Bulletin 117-2013, entitled Requirements, Test Procedure and Apparatus for Testing the Smolder Resistance of Materials Used in Upholstered Furniture.
(3)Flame retardant Flame-retardant chemical means any chemical or chemical compound for which a functional use is to resist or inhibit the spread of fire. Flame retardant Flame-retardant chemicals include, but are not limited to, halogenated, phosphorous-based, nitrogen-based, and nanoscale flame retardants, flame retardant flame-retardant chemicals listed as designated chemicals pursuant to Section 105440 of the Health and Safety Code, and any chemical or chemical compound for which flame retardant appears on the substance Safety Data Sheet (SDS) pursuant to Section 1910.1200(g) of Title 29 of the Code of Federal Regulations.
(4)Chemical means either of the following:
(A)An organic or inorganic substance of a particular molecular identity, including any combination of those substances occurring, in whole or in part, as a result of a chemical reaction or occurring in nature, and any element, ion, or uncombined radical, and any degradate, metabolite, or reaction product of a substance with a particular molecular identity.
(B)A chemical ingredient, which means a substance comprising one or more substances described in subparagraph (A).
(5)Molecular identity means the substances properties listed below:
(A)Agglomeration state.
(B)Bulk density.
(C)Chemical composition, including surface coating.
(D)Crystal structure.
(E)Dispersability.
(F)Molecular structure.
(G)Particle density.
(H)Particle size, size distribution, and surface area.
(I)Physical form and shape, at room temperature and pressure.
(J)Physicochemical properties.
(K)Porosity.
(L)Solubility in water and biologically relevant fluids.
(M)Surface charge.
(N)Surface reactivity.
(6)Added flame retardant flame-retardant chemicals means flame retardant flame-retardant chemicals that are present in any covered product or component thereof at levels above 1,000 parts per million.
(7)Department means the Department of Toxic Substances Control.
(8)Consumer Price Index means the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics.
(b)(1)A manufacturer of covered products shall indicate whether or not the product contains added flame retardant flame-retardant chemicals by including the following flame retardant flame-retardant chemical statement on the label described in Section 1374.3 of Title 4 of the California Code of Regulations for covered products:
The upholstery materials in this product:
_____contain added flame retardant flame-retardant chemicals
_____contain NO added flame retardant flame-retardant chemicals
The State of California has updated the flammability standard and determined that the fire safety requirements for this product can be met without adding flame retardant flame-retardant chemicals. The state has identified many flame retardant flame-retardant chemicals as being known to, or strongly suspected of, adversely impacting human health or development.
A manufacturer of covered products shall indicate the absence or presence of added flame retardant flame-retardant chemicals by placing an X in one of the appropriate blanks.
(2)This statement shall be included in the label described in Section 1374.3 of Title 4 of the California Code of Regulations in accordance with the bureaus regulations for that label. The statement need not be in all capital letters, and shall follow the statement required by Section 1374.3 of Title 4 of the California Code of Regulations.
(c)(1)The manufacturer of the covered product sold in California shall retain documentation to show whether flame retardant chemicals were added. A written statement by the supplier of each component covered by Technical Bulletin 117-2013 attesting either that flame retardant chemicals were added or not added shall be sufficient documentation.(2)(c)(1)The bureau shall ensure compliance with the labeling and documentation requirements in this section.
(3)(A)Upon request, a manufacturer of a covered product sold in California shall provide to the bureau, within 30 days of the request, documentation establishing the accuracy of the flame retardant chemical statement on the label required by subdivision (b).(B)The bureau shall assess fines of not less than two thousand five hundred dollars ($2,500) but not more than fifteen thousand dollars ($15,000) in accordance with the factors described in subdivision (d) for the failure of the manufacturer of the covered product to maintain the documentation required by this section, or for the failure of the manufacturer of the covered product to provide, upon request, the documentation required by this section to the bureau. These fines shall replace any other fines in this article for a violation of the documentation requirements of this section. This subparagraph does not alter or amend any other penalty otherwise imposed by this article.(C)A manufacturer of covered products and component suppliers shall be jointly and severally liable for violations of the documentation required in this section. (D)(i)(2)(A)The bureau shall provide the Department of Toxic Substances Control with a selection of samples from covered products marked contain NO added flame retardant flame-retardant chemicals for testing for the presence of added flame retardant flame-retardant chemicals. The samples shall be from the components identified in paragraph (1) of subdivision (a). The bureau shall select samples based on consultation with the department, taking into account a range of manufacturers and types of covered products. The bureau and the department shall consult on the tests to be conducted by the department. The department shall provide the results of any completed test to the bureau. The bureau shall reimburse the department for the cost of testing for the presence of added flame retardant flame-retardant chemicals in covered products marked contain NO added flame retardant flame-retardant chemicals.
(ii)(B)No later than August 1 of each fiscal year, the bureau shall assess available resources and determine the number of tests to be conducted in the corresponding fiscal year, pursuant to this subparagraph.
(E)(i)(3)(A)If the departments testing shows that a covered product labeled as contain NO added flame retardant flame-retardant chemicals is mislabeled because it contains added flame retardant flame-retardant chemicals, the bureau may assess fines for violations against manufacturers of the covered product and component manufacturers to be held jointly and severally liable for the violation.
(ii)(B)A fine for a violation of this subparagraph relating to mislabeling shall be assessed in accordance with the factors described in subdivision (d) and the following schedule:
(I)(i)The fine for the first violation shall be not less than one thousand dollars ($1,000) but not more than two thousand five hundred dollars ($2,500).
(II)(ii)The fine for the second violation shall be not less than two thousand five hundred dollars ($2,500) but not more than five thousand dollars ($5,000).
(III)(iii)The fine for the third violation shall be not less than five thousand dollars ($5,000) but not more than seven thousand five hundred dollars ($7,500).
(IV)(iv)The fine for any subsequent violation shall be not less than seven thousand five hundred dollars ($7,500) but not more than ten thousand dollars ($10,000).
(iii)(C)The fines in clause (ii) paragraph (B) shall replace any other fines in this article for a violation of the testing requirements of this section. This clause does not alter or amend any other penalty otherwise imposed by this article.
(iv)(D)If the departments testing shows that a covered product labeled as contain NO added flame retardant flame-retardant chemicals is mislabeled because it contains added flame retardant flame-retardant chemicals, in addition to a fine or any other request, the bureau may request that the label required by subdivision (b) for covered products that belong to the same stock keeping unit (SKU) currently produced by the manufacturer be corrected to reflect that flame retardant flame-retardant chemicals are added to the covered product.
(v)(E)If the departments testing shows that a covered product labeled as contain NO added flame retardant flame-retardant chemicals is mislabeled because it contains added flame retardant flame-retardant chemicals, in addition to a fine or any other request, the bureau may request additional testing of more products belonging to the same stock keeping unit (SKU) at the manufacturers expense to verify the accuracy of the label required by subdivision (b) for covered products if the manufacturer wishes to retain the contain NO added flame retardant flame-retardant chemicals designation on the label required by subdivision (b).
(d)(1)The bureau shall make information about any citation issued pursuant to this section available to the public on its Internet Web site. internet website.
(2)In determining the amount of the fine for violations of this section, the bureau shall consider the following factors:
(A)The nature and severity of the violation.
(B)The good or bad faith of the cited person.
(C)The history of previous violations.
(D)Evidence that the violation was willful.
(E)The extent to which the cited person or entity has cooperated with the bureau.
(3)(A)The bureau shall adjust all minimum and maximum fines imposed by this section for inflation every five years.
(B)The adjustment shall be equivalent to the percentage, if any, that the Consumer Price Index at the time of adjustment exceeds the Consumer Price Index at the time this section goes into effect. Any increase determined under this paragraph shall be rounded as follows:
(i)In multiples of ten dollars ($10) in the case of penalties less than or equal to one hundred dollars ($100).
(ii)In multiples of one hundred dollars ($100) in the case of penalties greater than one hundred dollars ($100) but less than or equal to one thousand dollars ($1,000).
(iii)In multiples of one thousand dollars ($1,000) in the case of penalties greater than one thousand dollars ($1,000).
(4)It shall be the duty of the bureau to receive complaints from consumers concerning covered products sold in California.
(e)The bureau may adopt regulations pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) to carry out this section.
SEC. 35.Section 19174 of the Business and Professions Code is amended to read:19174.All fees collected under this chapter shall be reported to the Controller and paid to the Treasurer and credited to the Home Furnishings and Thermal Insulation Household Goods and Services Fund, to be expended only for the purposes of the bureau and in carrying out this chapter.
SEC. 36.Section 19174.5 is added to the Business and Professions Code, to read:19174.5.(a)All moneys in the Home Furnishings and Thermal Insulation Fund on July 1, 2024, shall be transferred to the Household Goods and Services Fund on that date.
(b)This section shall remain in effect only until December 31, 2024, and as of that date is repealed.
SEC. 37.Section 19211 of the Business and Professions Code is amended to read:19211.Any person who has been denied a license, or who has had his or her their license revoked, or whose license is under suspension, or who has failed to renew his or her their license while it was under suspension, or any person who has been a member of any limited liability company or of any partnership, or an officer or director of any corporation, or an officer or person acting in a managerial capacity of any firm or association, whose license has been revoked, or whose license is under suspension, or who has failed to renew a license while it was under suspension, and while acting as a member, officer, director, or person acting in a managerial capacity, participated in any of the prohibited acts for which the license was suspended, or revoked, shall be prohibited from serving as a member of any licensed limited liability company or of any licensed partnership, or as an officer or director of any licensed corporation, or as an officer or person acting in a managerial capacity of any licensed firm or association, and the employment, election, or association of a person in this capacity by a licensee shall constitute grounds for disciplinary action against the licensee.
SEC. 38.Section 19212 of the Business and Professions Code is amended to read:19212.The performance by any partnership, limited liability company, corporation, firm, or association of any act or omission constituting a cause for disciplinary action, likewise constitutes a cause for disciplinary action against any licensee who is a member of any such partnership, that partnership or limited liability company, or an officer or director of any such that corporation, or an officer or person acting in a managerial capacity of any such that firm or association, if such the licensee participated in such the prohibited act or omission.
SEC. 39.Section 19214 of the Business and Professions Code is amended to read:19214.Any person who violates or proposes to violate any provision of this chapter relating to insulation standards may be enjoined by any court of competent jurisdiction. The court may make such those orders or judgments, including the appointment of a receiver, as may be necessary to prevent the use or employment by any person of any practices which violate this chapter, or which may be necessary to restore to any person in interest any money or property, real or personal, which may have been acquired by means of any practice which violates any provision of this chapter.
Actions for injunction under this section may be prosecuted by the Attorney General or any district attorney, county counsel, city attorney, or city prosecutor in this state in the name of the people of the State of California upon his or her their own motion or upon the complaint of any board, officer, person, corporation, association, partnership, limited liability company, or by any person acting for the interests of itself, its members, or the general public.
(a)A person who violates any provision of this chapter shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation, which shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the Attorney General or by any district attorney, county counsel, city attorney, or city prosecutor in any court of competent jurisdiction. The unit for a separate and distinct offense regarding insulation in violation of this chapter is each and every bag, bale, package, roll, or other container sold, offered for sale, or possessed with intent to sell or install contrary to the provisions of this chapter.
(b)If the action is brought by the Attorney General, one-half of the penalty collected shall be paid to the treasurer of the county in which the judgment was entered, and one-half to the Treasurer. If brought by a district attorney or county counsel, the entire amount of penalty collected shall be paid to the treasurer of the county in which the judgment was entered. If brought by a city attorney or city prosecutor, one-half of the penalty shall be paid to the treasurer of the county and one-half to the city.
(c)If the action is brought at the request of the bureau, the court shall determine the reasonable expenses incurred by the bureau in the investigation and prosecution of the action.
Before any penalty collected is paid out pursuant to subdivision (b), the amount of the reasonable expenses incurred by the bureau shall be paid to the Treasurer.
SEC. 40.Section 19225.5 of the Business and Professions Code is amended to read:19225.5.For purposes of this chapter, unless the context otherwise requires, the following provisions shall apply:
(a)Broker means a person engaged by others in the act of arranging, for compensation, the intrastate transportation of used household goods by a motor vehicle over the highways of this state for, or on behalf of, a shipper, a consignor, or a consignee.
(b)Bureau refers to the Bureau of Household Goods and Services, as established in Section 9810.
(c)Chief refers to the chief of the bureau.
(d)Corporation includes a corporation, a company, a limited liability company, an association, and a joint stock association.
(e)Department refers to the Department of Consumer Affairs.
(f)Director refers to the Director of Consumer Affairs.
(g)Fund means the Household Movers Goods and Services Fund established pursuant to Section 19229. 9870.
(h)Household mover includes every corporation or person, their lessees, trustee, receivers, or trustees appointed by any court whatsoever, engaged in the permitted or unpermitted transportation for compensation or hire as a business by means of a motor vehicle or motor vehicles being used in the transportation of used household goods and personal effects over any public highway in this state. A broker, as defined in subdivision (a), shall be considered a household mover. The Legislature intends household mover to have the same meaning as household goods carrier in former Section 5109 of the Public Utilities Code, as that section read on June 30, 2018.
(i)Inspector refers to an inspector either employed by, or under contract to, the bureau.
(j)Motor vehicle means every motor truck, tractor, or other self-propelled vehicle used for transportation of property over the public highways, other than upon fixed rails or tracks, and any trailer, semitrailer, dolly, or other vehicle drawn thereby.
(k)Owner, with respect to a motor vehicle used in the transportation of property for compensation by a household mover, means the corporation or person who is registered with the Department of Motor Vehicles as the owner of the vehicle, or who has a legal right to possession of the vehicle pursuant to a lease or rental agreement.
(l)Person includes an individual, a firm, or a copartnership. partnership.
(m)Public highway includes every public street, road, or highway in this state.
SEC. 41.Section 19229 of the Business and Professions Code is amended to read:19229.(a)The Household Movers Fund is hereby established within the State Treasury. Moneys in the fund shall be used, upon appropriation by the Legislature, by the bureau for the administration of this chapter.
(b)Except as otherwise provided in this chapter, all moneys, including fines or penalties imposed under this chapter, collected pursuant to this chapter shall be deposited into the fund.
(c)Notwithstanding subdivision (a) of Section 205, the Household Movers Fund is a special fund within the Professions and Vocations Fund and is subject to subdivision (b) of Section 205.SEC. 42.Section 19229.5 is added to the Business and Professions Code, to read:19229.5.(a)All moneys in the Household Movers Fund on July 1, 2024, shall be transferred to the Household Goods and Services Fund on that date.
(b)This section shall remain in effect only until December 31, 2024, and as of that date is repealed.
SEC. 23.SEC. 43.Section 19239 of the Business and Professions Code is amended to read:19239.(a)Before a permit is issued, the bureau shall require the applicant to establish ability and reasonable financial responsibility to initiate the proposed operations. The bureau shall require the applicant to establish their knowledge and ability to engage in business as a household mover by examination. The examination may be written or oral, or in the form of a demonstration of skill, or any combination of these, and any investigation of character, experience, and any tests of technical knowledge and manual skill that the bureau determines to be appropriate may be employed. In any examination, the qualification of the applicant shall be determined by an appraisal made by a member of the bureaus staff. The criteria used by the bureau staff in making the required appraisal to determine whether the applicant has met the qualifications shall be established by the bureau by rule or regulation, in accordance with the provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. An applicant who has been determined to be unqualified may establish their qualifications through a subsequent examination, but no subsequent examination shall be taken prior to 30 days from the date when the applicant was found to be unqualified. If the staff member determines that the applicant is not qualified and denies the application, the bureau shall notify the applicant in writing. Within 30 days of service of the notice, the applicant may file a written request with the bureau for a hearing on the denial. Upon receipt of a timely filed request, the bureau shall request that the matter be set for a hearing. The hearing shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director shall have all the powers granted therein. If the staff member determines that the applicant is qualified, the bureau may issue a permit without a hearing.
(b)An applicant may qualify in one of the following ways:
(1)If an individual, they may qualify by personal examination or by examination of their responsible managing employee.
(2)If a copartnership partnership or corporation, or any other type of business organization, it may qualify by examination of the responsible managing officer, an employee who works at least 32 hours per week, or a partner of the applicant firm.
(c)If the individual qualified by examination ceases to be connected with the permitholder, the permitholder shall notify the bureau in writing within 30 days after the cessation. If notice is given, the permit shall remain in force a reasonable length of time in order that another representative of the applicant may be qualified before the bureau. If the permitholder fails to notify the bureau of the cessation within a 30-day period, at the end of that period the permit shall be automatically suspended.
(d)Each applicant for a permit shall electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice for each owner, partner, officer, and director as a prerequisite to the issuance of a permit to operate as a household mover. The fingerprint images and related information shall be submitted for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and arrests, and information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on their own recognizance, pending trial or appeal.
(1)The Department of Justice shall provide a response to the bureau pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.
(2)The bureau shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.
(3)The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this subdivision.
(e)The bureau may require, as a precondition to the issuance of a permit, the procurement of a performance bond sufficient to facilitate the collection of fines, penalties, and restitution related to enforcement actions that can be taken against the applicant.
(f)The bureau may refuse to issue a permit if it is shown that an applicant or an officer, director, partner, or associate of an applicant has committed any act constituting dishonesty or fraud; committed any act that, if committed by a permitholder, would be grounds for a suspension or revocation of the permit; misrepresented any material fact on the application; or, was convicted of an offense that is substantially related to the qualifications, functions, or duties of the business or profession, except that if the bureau determines that the applicant is otherwise suitable to be issued a permit, and granting the permit would not compromise public safety, the bureau shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the applicant, and shall evaluate the suitability of the applicant to be issued a permit based on the evidence found through the review.
(g)A permit shall not be issued unless it has been shown that the applicant meets one of the following residence requirements:
(1)For an individual, the applicant shall have resided in the State of California for not less than 90 days next preceding the filing of the application.
(2)For a partnership, the partner having the largest percentage interest in the partnership shall have resided in the State of California continuously for not less than 90 days next preceding the filing of the application.
(3)For a limited liability company or a corporation, the applicant shall be a domestic limited liability company or a domestic corporation or shall be qualified to transact business in the State of California as a foreign limited liability company or a foreign corporation at the time of filing the application.
(h)The bureau shall prescribe, amend, and repeal rules in accordance with law for the administration of this section.
(i)If the bureau denies an application, the bureau shall notify the applicant in writing. Within 30 days of service of the notice, the applicant may file a written request with the bureau for a hearing on the denial. Upon receipt of a timely filed request, the bureau shall request that the matter be set for hearing. The hearing shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director shall have all the powers granted therein.
SEC. 24.SEC. 44.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
(a)(1)There is in the Department of Consumer Affairs a Bureau of Household Goods and Services, under the supervision and control of the director. The director shall administer and enforce the provisions of this chapter and Chapter 3 (commencing with Section 19000) and Chapter 3.1 (commencing with Section 19225) of Division 8.
(2)There is a Division of Household Movers within the bureau for purposes of administering Chapter 3.1 (commencing with Section 19225) of Division 8. The Division of Household Movers shall be overseen by the chief of the bureau.
(b)The Governor shall appoint, subject to confirmation by the Senate, a chief of the bureau at a salary to be fixed and determined by the director with the approval of the Director of Finance. The chief shall serve under the direction and supervision of the director and at the pleasure of the Governor.
(c)Every power granted to or duty imposed upon the director under this chapter and Chapter 3 (commencing with Section 19000) and Chapter 3.1 (commencing with Section 19225) of Division 8 may be exercised or performed in the name of the director by a deputy or assistant director or by the chief, subject to conditions and limitations that the director may prescribe.
(d)Whenever the laws of this state refer to the Bureau of Electronic Repair Dealer Registration or the Bureau of Electronic and Appliance Repair, the reference shall be construed to be to the Bureau of Household Goods and Services.
(e)Notwithstanding any other law, the powers and duties of the Bureau of Household Goods and Services, as set forth in this chapter and Chapter 3 (commencing with Section 19000) and Chapter 3.1 (commencing with Section 19225) of Division 8, shall be subject to review by the appropriate policy committees of the Legislature. The review shall be performed as if this chapter and Chapter 3 (commencing with Section 19000) and Chapter 3.1 (commencing with Section 19225) of Division 8 were scheduled to be repealed on January 1, 2024. 2028.
SECTION 1.SEC. 2.Section 9812 of the Business and Professions Code is amended to read:9812.The director shall gather evidence of violations of this chapter and of any regulation established hereunder, by any service dealer, whether registered or not, and by any employee, partner, officer, or member of any service dealer. The director shall, on their own initiative, conduct spot check investigations of service dealers throughout the state on a continuous basis, but no less than twice per year.
SEC. 3.Section 9812.5 of the Business and Professions Code is amended to read:9812.5.The director shall gather evidence of violations of this chapter and of any regulation established hereunder by any service contractor, whether registered or not, and by any employee, partner, officer, or member of any service contractor. The director shall, on their own initiative, conduct spot check investigations of service contractors throughout the state on a continuous basis.
This section shall remain in effect only until January 1, 2024, 2028, and as of that date is repealed.
SEC. 2.SEC. 4.Section 9814 of the Business and Professions Code is amended to read:9814.The director may establish and enforce regulations as may be reasonable for the conduct of service dealers and for the general enforcement of the various provisions of this chapter in the protection of the public. The director may, by regulation, define the scope of the terms described in subdivisions (g) to (q), inclusive, of Section 9801 to include items of the same general nature or class as those enumerated therein. The director shall either make available on its internet website or distribute to each registered service dealer copies of this chapter and of the regulations thereunder. These regulations shall be adopted, amended, or repealed in accordance with the provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
SEC. 3.SEC. 5.Section 9814.5 of the Business and Professions Code is amended to read:9814.5.The director may establish and enforce reasonable regulations for the conduct of service contractors, and for the general enforcement of the various provisions of this chapter in the protection of the public. The director shall either make available on its internet website or distribute to each registered service contractor copies of this chapter and of the regulations adopted under this chapter. Regulations shall be adopted, amended, or repealed in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
SEC. 6.Section 9830.5 of the Business and Professions Code is amended to read:9830.5.(a)Each service contractor shall pay the fee required by this chapter for each place of business operated by them in this state and shall register with the bureau upon forms prescribed by the director. The forms shall contain sufficient information to identify the service contractor, including name, address, retail sellers permit number, if a permit is required under the Sales and Use Tax Law (Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code), a copy of the certificate of qualification as filed with the Secretary of State if the service contractor is a foreign corporation, and other identifying data to be prescribed by the bureau. If the business is to be carried on under a fictitious name, that fictitious name shall be stated. If the service contractor is a partnership, identifying data shall be stated for each partner. If the service contractor is a private company that does not file an annual report on Form 10-K with the Securities and Exchange Commission, data shall be included for each of the officers and directors of the company as well as for the individual in charge of each place of the service contractors business in the State of California, subject to any regulations the director may adopt. If the service contractor is a publicly held corporation or a private company that files an annual report on Form 10-K with the Securities and Exchange Commission, it shall be sufficient for purposes of providing data for each of the officers and directors of the corporation or company to file with the director the most recent annual report on Form 10-K that is filed with the Securities and Exchange Commission.
(b)A service contractor who does not operate a place of business in this state but who sells, issues, or administers service contracts in this state, shall hold a valid registration issued by the bureau and shall pay the registration fee required by this chapter as if they had a place of business in this state.
(c)This section shall remain in effect only until January 1, 2024, 2028, and as of that date is repealed.
SEC. 4.SEC. 7.Section 9832.5 of the Business and Professions Code is amended to read:9832.5.(a)Registrations issued under this chapter shall expire no more than 12 months after the issue date. The expiration date of registrations shall be set by the director in a manner to best distribute renewal procedures throughout the year.
(b)To renew an unexpired registration, the service contractor shall, on or before the expiration date of the registration, apply for renewal on a form prescribed by the director, and pay the renewal fee prescribed by this chapter.
(c)To renew an expired registration, the service contractor shall apply for renewal on a form prescribed by the director, pay the renewal fee in effect on the last regular renewal date, and pay all accrued and unpaid delinquency and renewal fees. The bureau may impose conditions on a registration issued pursuant to this subdivision.
(d)Renewal is effective on the date that the application is filed, the renewal fee is paid, and all delinquency fees are paid.
(e)For purposes of implementing the distribution of the renewal of registrations throughout the year, the director may extend, by not more than six months, the date fixed by law for renewal of a registration, except that, in that event, any renewal fee that may be involved shall be prorated in such a manner that no person shall be required to pay a greater or lesser fee than would have been required had the change in renewal dates not occurred.
(f)A registration that is not renewed within six years of its expiration shall be canceled, but if the holder of the registration submits a new application and meets all of the following requirements, the registration may be reissued or reinstated:
(1)No fact, circumstance, or condition exists which would justify denial of registration under Section 480.
(2)The registrant pays all renewal, delinquency, and penalty fees that have accrued since the date on which the registration was last renewed.
(g)This section shall remain in effect only until January 1, 2024, 2028, and as of that date is repealed.
SEC. 8.Section 9847.5 of the Business and Professions Code is amended to read:9847.5.(a)Each service contractor shall maintain those records as are required by the regulations adopted to carry out the provisions of this chapter for a period of at least three years. These records shall be open for reasonable inspection by the director or other law enforcement officials.
(b)This section shall remain in effect only until January 1, 2024, 2028, and as of that date is repealed.
SEC. 9.Section 9849 of the Business and Professions Code, as amended by Section 81 of Chapter 625 of the Statutes of 2022, is amended to read:9849.(a)The expiration of a valid registration shall not deprive the director of jurisdiction to proceed with any investigation or hearing on a cease and desist order against a service dealer or service contractor or to render a decision to suspend, revoke, or place on probation a registration.
(b)This section shall remain in effect only until January 1, 2024, 2028, and as of that date is repealed.
SEC. 10.Section 9849 of the Business and Professions Code, as amended by Section 82 of Chapter 625 of the Statutes of 2022, is amended to read:9849.(a)The expiration of a valid registration shall not deprive the director of jurisdiction to proceed with any investigation or hearing on a cease and desist order against a service dealer or to render a decision to suspend, revoke, or place on probation a registration.
(b)This section shall become operative on January 1, 2024. 2028.
SEC. 11.Section 9851 of the Business and Professions Code, as amended by Section 83 of Chapter 625 of the Statutes of 2022, is amended to read:9851.(a)The superior court in and for the county wherein any person carries on, or attempts to carry on, business as a service dealer or service contractor in violation of the provisions of this chapter, or any regulation thereunder, shall, on application of the director, issue an injunction or other appropriate order restraining that conduct.
(b)The proceedings under this section shall be governed by Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure, except that the director shall not be required to allege facts necessary to show or tending to show lack of an adequate remedy at law or irreparable injury.
(c)This section shall remain in effect only until January 1, 2024, 2028, and as of that date is repealed.
SEC. 12.Section 9851 of the Business and Professions Code, as amended by Section 84 of Chapter 625 of the Statutes of 2022, is amended to read:9851.(a)The superior court in and for the county wherein any person carries on, or attempts to carry on, business as a service dealer in violation of the provisions of this chapter, or any regulation thereunder, shall, on application of the director, issue an injunction or other appropriate order restraining that conduct.
(b)The proceedings under this section shall be governed by Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure, except that the director shall not be required to allege facts necessary to show or tending to show lack of an adequate remedy at law or irreparable injury.
(c)This section shall become operative on January 1, 2024. 2028.
SEC. 13.Section 9853 of the Business and Professions Code, as amended by Section 85 of Chapter 625 of the Statutes of 2022, is amended to read:9853.(a)A plea or verdict of guilty or a conviction following a plea of nolo contendere made to a charge substantially related to the qualifications, functions, and duties of a service dealer or service contractor is deemed to be a conviction within the meaning of this article. The director may suspend, revoke, or place on probation a registration, or may deny registration, when the time for appeal has elapsed, or the judgment of conviction has been affirmed on appeal or when an order granting probation is made suspending the imposition of sentence, irrespective of a subsequent order under Section 1203.4 of the Penal Code, allowing that person to withdraw their plea of guilty and to enter a plea of not guilty, or setting aside the verdict of guilty, or dismissing the accusation, information, or indictment.
(b)This section shall remain in effect only until January 1, 2024, 2028, and as of that date is repealed.
SEC. 14.Section 9853 of the Business and Professions Code, as amended by Section 86 of Chapter 625 of the Statutes of 2022, is amended to read:9853.(a)A plea or verdict of guilty or a conviction following a plea of nolo contendere made to a charge substantially related to the qualifications, functions, and duties of a service dealer is deemed to be a conviction within the meaning of this article. The director may suspend, revoke, or place on probation a registration, or may deny registration, when the time for appeal has elapsed, or the judgment of conviction has been affirmed on appeal or when an order granting probation is made suspending the imposition of sentence, irrespective of a subsequent order under Section 1203.4 of the Penal Code allowing that person to withdraw their plea of guilty and to enter a plea of not guilty, or setting aside the verdict of guilty, or dismissing the accusation, information, or indictment.
(b)This section shall become operative January 1, 2024. 2028.
SEC. 15.Section 9855.9 of the Business and Professions Code is amended to read:9855.9.This article shall remain in effect only until January 1, 2024, 2028, and as of that date is repealed.
SEC. 16.Section 9860 of the Business and Professions Code, as amended by Section 88 of Chapter 625 of the Statutes of 2022, is amended to read:9860.(a)The director shall establish procedures for accepting complaints from the public against any service dealer or service contractor.
(b)This section shall remain in effect only until January 1, 2024, 2028, and as of that date is repealed.
SEC. 17.Section 9860 of the Business and Professions Code, as amended by Section 89 of Chapter 625 of the Statutes of 2022, is amended to read:9860.(a)The director shall establish procedures for accepting complaints from the public against any service dealer.
(b)This section shall become operative on January 1, 2024. 2028.
SEC. 18.Section 9862.5 of the Business and Professions Code is amended to read:9862.5.(a)If a complaint indicates a possible violation of this chapter or of the regulations adopted pursuant to this chapter, the director may advise the service contractor of the contents of the complaint and, if the service contractor is so advised, the director shall make a summary investigation of the facts after the service contractor has had reasonable opportunity to reply thereto.
(b)This section shall remain in effect only until January 1, 2024, 2028, and as of that date is repealed.
SEC. 19.Section 9863 of the Business and Professions Code, as amended by Section 91 of Chapter 625 of the Statutes of 2022, is amended to read:9863.(a)If, upon summary investigation, it appears probable to the director that a violation of this chapter, or the regulations thereunder, has occurred, the director, in their discretion, may suggest measures that in the directors judgment would compensate the complainant for the damages they suffered as a result of the alleged violation. If the service dealer or service contractor accepts the directors suggestions and performs accordingly, the director shall give that fact due consideration in any subsequent disciplinary proceeding. If the service dealer or service contractor declines to abide by the suggestions of the director, the director may investigate further and may institute disciplinary proceedings in accordance with the provisions of this chapter.
(b)This section shall remain in effect only until January 1, 2024, 2028, and as of that date is repealed.
SEC. 20.Section 9863 of the Business and Professions Code, as amended by Section 92 of Chapter 625 of the Statutes of 2022, is amended to read:9863.(a)If, upon summary investigation, it appears probable to the director that a violation of this chapter, or the regulations thereunder, has occurred, the director, in their discretion, may suggest measures that in the directors judgment would compensate the complainant for the damages they suffered as a result of the alleged violation. If the service dealer accepts the directors suggestions and performs accordingly, the director shall give that fact due consideration in any subsequent disciplinary proceeding. If the service dealer declines to abide by the suggestions of the director, the director may investigate further and may institute disciplinary proceedings in accordance with the provisions of this chapter.
(b)This section shall become operative on January 1, 2024. 2028.
SEC. 21.Section 9873 of the Business and Professions Code, as amended by Section 93 of Chapter 625 of the Statutes of 2022, is amended to read:9873.The fees prescribed by this chapter shall be set by the director by regulation, according to the following schedule:
(a)(1)The initial registration fee for an electronic repair industry service dealer or for an appliance repair industry service dealer is not more than two hundred five dollars ($205) for each place of business in this state. The initial registration fee for a service contractor is not more than ninety-five dollars ($95) for each place of business in this state.
(2)The initial registration fee for a person who engages in business as both an electronic repair industry service dealer and an appliance repair industry service dealer is not more than four hundred five dollars ($405) for each place of business in this state. The initial registration fee for a person who is a service contractor and engages in business as either an electronic repair industry service dealer or an appliance repair industry service dealer is not more than three hundred dollars ($300) for each place of business in this state.
(3)The initial registration fee for a person who engages in both the electronic repair industry and the appliance repair industry as a service dealer and is a service contractor is not more than five hundred dollars ($500) for each place of business in this state.
(4)A service dealer or service contractor who does not operate a place of business in this state, but engages in the electronic repair industry or the appliance repair industry, or sells, issues, or administers service contracts in this state, shall pay the registration fee specified herein as if that service dealer or service contractor had a place of business in this state.
(b)(1)The annual registration renewal fee for an electronic repair industry service dealer or for an appliance repair industry service dealer is not more than two hundred five dollars ($205) for each place of business in this state, if renewed prior to its expiration date. The annual registration renewal fee for a service contractor is ninety-five dollars ($95) for each place of business in this state, if renewed prior to its expiration date.
(2)The annual renewal fee for a service dealer who engages in the business as both an electronic repair industry service dealer and an appliance repair industry service dealer is not more than four hundred dollars ($400) for each place of business in this state.
(3)The annual renewal fee for a service dealer who engages in the electronic repair industry and the appliance repair industry and is a service contractor is not more than four hundred seventy-five dollars ($475) for each place of business in this state.
(4)A service dealer or service contractor who does not operate a place of business in this state, but who engages in the electronic repair industry or the appliance repair industry, or sells or issues service contracts in this state, shall pay the renewal fee specified herein as if that service dealer or service contractor had a place of business in this state.
(c)The delinquency fee is an amount equal to 50 percent of the renewal fee for a license in effect on the date of renewal of the license, except as otherwise provided in Section 163.5.
(d) This section shall remain in effect only until January 1, 2024, 2028, and as of that date is repealed.
SEC. 22.Section 9873 of the Business and Professions Code, as amended by Section 94 of Chapter 625 of the Statutes of 2022, is amended to read:9873.The fees prescribed by this chapter shall be set by the director by regulation, according to the following schedule:
(a)The initial registration fee for an electronic repair industry service dealer or for an appliance repair industry service dealer is not more than two hundred five dollars ($205) for each place of business in this state. The initial registration fee for a person who engages in business as both an electronic repair industry service dealer and an appliance repair industry service dealer is not more than four hundred five dollars ($405).
(b)The annual registration renewal fee for an electronic repair industry service dealer or for an appliance repair industry service dealer is not more than two hundred five dollars ($205) for each place of business in this state, if renewed prior to its expiration date. The annual renewal fee for a service dealer who engages in the business as both an electronic repair industry service dealer and an appliance repair industry service dealer is not more than four hundred dollars ($400).
(c)The delinquency fee is an amount equal to 50 percent of the renewal fee for a license in effect on the date of renewal of the license, except as otherwise provided in Section 163.5.
(d)This section shall become operative on January 1, 2024. 2028.
SEC. 5.SEC. 23.Section 19239 of the Business and Professions Code is amended to read:19239.(a)Before a permit is issued, the bureau shall require the applicant to establish ability and reasonable financial responsibility to initiate the proposed operations. The bureau shall require the applicant to establish their knowledge and ability to engage in business as a household mover by examination. The examination may be written or oral, or in the form of a demonstration of skill, or any combination of these, and any investigation of character, experience, and any tests of technical knowledge and manual skill that the bureau determines to be appropriate may be employed. In any examination, the qualification of the applicant shall be determined by an appraisal made by a member of the bureaus staff. The criteria used by the bureau staff in making the required appraisal to determine whether the applicant has met the qualifications shall be established by the bureau by rule or regulation, in accordance with the provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. An applicant who has been determined to be unqualified may establish their qualifications through a subsequent examination, but no subsequent examination shall be taken prior to 30 days from the date when the applicant was found to be unqualified. If the staff member determines that the applicant is not qualified and denies the application, the bureau shall notify the applicant in writing. Within 30 days of service of the notice, the applicant may file a written request with the bureau for a hearing on the denial. Upon receipt of a timely filed request, the bureau shall request that the matter be set for a hearing. The hearing shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director shall have all the powers granted therein. If the staff member determines that the applicant is qualified, the bureau may issue a permit without a hearing.
(b)An applicant may qualify in one of the following ways:
(1)If an individual, they may qualify by personal examination or by examination of their responsible managing employee.
(2)If a copartnership or corporation, or any other type of business organization, it may qualify by examination of the responsible managing officer, an employee who works at least 32 hours per week, or a partner of the applicant firm.
(c)If the individual qualified by examination ceases to be connected with the permitholder, the permitholder shall notify the bureau in writing within 30 days after the cessation. If notice is given, the permit shall remain in force a reasonable length of time in order that another representative of the applicant may be qualified before the bureau. If the permitholder fails to notify the bureau of the cessation within a 30-day period, at the end of that period the permit shall be automatically suspended.
(d)Each applicant for a permit shall electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice for each owner, partner, officer, and director as a prerequisite to the issuance of a permit to operate as a household mover. The fingerprint images and related information shall be submitted for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and arrests, and information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on their own recognizance, pending trial or appeal.
(1)The Department of Justice shall provide a response to the bureau pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.
(2)The bureau shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.
(3)The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this subdivision.
(e)The bureau may require, as a precondition to the issuance of a permit, the procurement of a performance bond sufficient to facilitate the collection of fines, penalties, and restitution related to enforcement actions that can be taken against the applicant.
(f)The bureau may refuse to issue a permit if it is shown that an applicant or an officer, director, partner, or associate of an applicant has committed any act constituting dishonesty or fraud; committed any act that, if committed by a permitholder, would be grounds for a suspension or revocation of the permit; misrepresented any material fact on the application; or, was convicted of an offense that is substantially related to the qualifications, functions, or duties of the business or profession, except that if the bureau determines that the applicant is otherwise suitable to be issued a permit, and granting the permit would not compromise public safety, the bureau shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the applicant, and shall evaluate the suitability of the applicant to be issued a permit based on the evidence found through the review.
(g)A permit shall not be issued unless it has been shown that the applicant meets one of the following residence requirements:
(1)For an individual, the applicant shall have resided in the State of California for not less than 90 days next preceding the filing of the application.
(2)For a partnership, the partner having the largest percentage interest in the partnership shall have resided in the State of California continuously for not less than 90 days next preceding the filing of the application.
(3)For a corporation, the applicant shall be a domestic corporation or shall be qualified to transact business in the State of California as a foreign corporation at the time of filing the application.
(h)The bureau shall prescribe, amend, and repeal rules in accordance with law for the administration of this section.
(i)If the bureau denies an application, the bureau shall notify the applicant in writing. Within 30 days of service of the notice, the applicant may file a written request with the bureau for a hearing on the denial. Upon receipt of a timely filed request, the bureau shall request that the matter be set for hearing. The hearing shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director shall have all the powers granted therein.
SEC. 24.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The director shall gather evidence of violations of this chapter and of any regulation established hereunder, by any service dealer, whether registered or not, and by any employee, partner, officer, or member of any service dealer. The director shall, on their own initiative, conduct spot check investigations of service dealers throughout the state on a continuous basis, but no less than twice per year.
SEC. 2.Section 9814 of the Business and Professions Code is amended to read:9814.The director may establish and enforce regulations as may be reasonable for the conduct of service dealers and for the general enforcement of the various provisions of this chapter in the protection of the public. The director may, by regulation, define the scope of the terms described in subdivisions (g) to (q), inclusive, of Section 9801 to include items of the same general nature or class as those enumerated therein. The director shall either make available on its internet website or distribute to each registered service dealer copies of this chapter and of the regulations thereunder. These regulations shall be adopted, amended, or repealed in accordance with the provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
SEC. 3.Section 9814.5 of the Business and Professions Code is amended to read:9814.5.The director may establish and enforce reasonable regulations for the conduct of service contractors, and for the general enforcement of the various provisions of this chapter in the protection of the public. The director shall either make available on its internet website or distribute to each registered service contractor copies of this chapter and of the regulations adopted under this chapter. Regulations shall be adopted, amended, or repealed in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
SEC. 4.Section 9832.5 of the Business and Professions Code is amended to read:9832.5.(a)Registrations issued under this chapter shall expire no more than 12 months after the issue date. The expiration date of registrations shall be set by the director in a manner to best distribute renewal procedures throughout the year.
(b)To renew an unexpired registration, the service contractor shall, on or before the expiration date of the registration, apply for renewal on a form prescribed by the director, and pay the renewal fee prescribed by this chapter.
(c)To renew an expired registration, the service contractor shall apply for renewal on a form prescribed by the director, pay the renewal fee in effect on the last regular renewal date, and pay all accrued and unpaid delinquency and renewal fees. The bureau may impose conditions on a registration issued pursuant to this subdivision.
(d)Renewal is effective on the date that the application is filed, the renewal fee is paid, and all delinquency fees are paid.
(e)For purposes of implementing the distribution of the renewal of registrations throughout the year, the director may extend, by not more than six months, the date fixed by law for renewal of a registration, except that, in that event, any renewal fee that may be involved shall be prorated in such a manner that no person shall be required to pay a greater or lesser fee than would have been required had the change in renewal dates not occurred.
(f)A registration that is not renewed within six years of its expiration shall be canceled, but if the holder of the registration submits a new application and meets all of the following requirements, the registration may be reissued or reinstated:
(1)No fact, circumstance, or condition exists which would justify denial of registration under Section 480.
(2)The registrant pays all renewal, delinquency, and penalty fees that have accrued since the date on which the registration was last renewed.
(f)(g)This section shall remain in effect only until January 1, 2024, and as of that date is repealed.
SEC. 5.Section 19239 of the Business and Professions Code is amended to read:19239.(a)Before a permit is issued, the bureau shall require the applicant to establish ability and reasonable financial responsibility to initiate the proposed operations. The bureau shall require the applicant to establish his or her their knowledge and ability to engage in business as a household mover by examination. The examination may be written or oral, or in the form of a demonstration of skill, or any combination of these, and any investigation of character, experience, and any tests of technical knowledge and manual skill that the bureau determines to be appropriate may be employed. In any examination, the qualification of the applicant shall be determined by an appraisal made by a member of the bureaus staff. The criteria used by the bureau staff in making the required appraisal to determine whether the applicant has met the qualifications shall be established by the bureau by rule or regulation, in accordance with the provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. An applicant who has been determined to be unqualified may establish his or her their qualifications through a subsequent examination, but no subsequent examination shall be taken prior to 30 days from the date when the applicant was found to be unqualified. If the staff member determines that the applicant is not qualified and denies the application, the bureau shall notify the applicant in writing. Within 30 days of service of the notice, the applicant may file a written request with the bureau for a hearing on the denial. Upon receipt of a timely filed request, the bureau shall request that the matter be set for a hearing. The hearing shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director shall have all the powers granted therein. If the staff member determines that the applicant is qualified, the bureau may issue a permit without a hearing.
(b)An applicant may qualify in one of the following ways:
(1)If an individual, he or she they may qualify by personal examination or by examination of his or her their responsible managing employee.
(2)If a copartnership or corporation, or any other type of business organization, it may qualify by examination of the responsible managing officer, an employee who works at least 32 hours per week, or a partner of the applicant firm.
(c)If the individual qualified by examination ceases to be connected with the permitholder, the permitholder shall notify the bureau in writing within 30 days after the cessation. If notice is given, the permit shall remain in force a reasonable length of time in order that another representative of the applicant may be qualified before the bureau. If the permitholder fails to notify the bureau of the cessation within a 30-day period, at the end of that period the permit shall be automatically suspended.
(d)Each applicant for a permit shall electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice for each owner, partner, officer, and director as a prerequisite to the issuance of a permit to operate as a household mover. The fingerprint images and related information shall be submitted for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and arrests, and information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on his or her their own recognizance, pending trial or appeal.
(1)The Department of Justice shall provide a response to the bureau pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.
(2)The bureau shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.
(3)The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this subdivision.
(e)The bureau may require, as a precondition to the issuance of a permit, the procurement of a performance bond sufficient to facilitate the collection of fines, penalties, and restitution related to enforcement actions that can be taken against the applicant.
(f)The bureau may refuse to issue a permit if it is shown that an applicant or an officer, director, partner, or associate of an applicant has committed any act constituting dishonesty or fraud; committed any act that, if committed by a permitholder, would be grounds for a suspension or revocation of the permit; misrepresented any material fact on the application; or, was convicted of an offense that is substantially related to the qualifications, functions, or duties of the business or profession, except that if the bureau determines that the applicant is otherwise suitable to be issued a permit, and granting the permit would not compromise public safety, the bureau shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the applicant, and shall evaluate the suitability of the applicant to be issued a permit based on the evidence found through the review.
(g)The bureau shall issue a permit only to those applicants who it finds have demonstrated that they possess sufficient knowledge, ability, integrity, and financial resources and responsibility to perform the service within the scope of their application.(h)(g)A permit shall not be issued unless it has been shown that the applicant meets one of the following residence requirements:
(1)For an individual, the applicant shall have resided in the State of California for not less than 90 days next preceding the filing of the application.
(2)For a partnership, the partner having the largest percentage interest in the partnership shall have resided in the State of California continuously for not less than 90 days next preceding the filing of the application.
(3)For a corporation, the applicant shall be a domestic corporation or shall be qualified to transact business in the State of California as a foreign corporation at the time of filing the application.
(i)(h)The bureau shall prescribe, amend, and repeal rules in accordance with law for the administration of this section.
(j)(i)If the bureau denies an application, the bureau shall notify the applicant in writing. Within 30 days of service of the notice, the applicant may file a written request with the bureau for a hearing on the denial. Upon receipt of a timely filed request, the bureau shall request that the matter be set for hearing. The hearing shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director shall have all the powers granted therein.
The director shall gather evidence of violations of this chapter and of any regulation established hereunder, by any service dealer, whether registered or not, and by any employee, partner, officer, or member of any service dealer. The director shall, on his their own initiative, conduct spot check investigations of service dealers throughout the State state on a continuous basis. basis, but no less than twice per year.
SEC. 2.Section 9814 of the Business and Professions Code is amended to read:9814.The director may establish and enforce regulations as may be reasonable for the conduct of service dealers and for the general enforcement of the various provisions of this chapter in the protection of the public. The director may, by regulation, define the scope of the terms described in subdivisions (g) to (q), inclusive, of Section 9801 to include items of the same general nature or class as those enumerated therein. The director shall either make available on its internet website or distribute to each registered service dealer copies of this chapter and of the regulations thereunder. These regulations shall be adopted, amended, or repealed in accordance with the provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
SEC. 3.Section 9814.5 of the Business and Professions Code is amended to read:9814.5.The director may establish and enforce reasonable regulations for the conduct of service contractors, and for the general enforcement of the various provisions of this chapter in the protection of the public. The director shall either make available on its internet website or distribute to each registered service contractor copies of this chapter and of the regulations adopted under this chapter. Regulations shall be adopted, amended, or repealed in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
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Date
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Status
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| Oct 8, 2023 | Chaptered by Secretary of State. Chapter 508, Statutes of 2023. |
| Oct 8, 2023 | Approved by the Governor. |
| Sep 21, 2023 | Enrolled and presented to the Governor at 4 p.m. |
| Sep 14, 2023 | Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2798.) Ordered to engrossing and enrolling. |
| Sep 13, 2023 | In Senate. Concurrence in Assembly amendments pending. |
| Sep 13, 2023 | Read third time. Passed. (Ayes 80. Noes 0. Page 3390.) Ordered to the Senate. |
| Sep 5, 2023 | Read second time. Ordered to third reading. |
| Sep 1, 2023 | From committee: Do pass. (Ayes 16. Noes 0.) (September 1). |
| Aug 16, 2023 | August 16 set for first hearing. Placed on suspense file. |
| Jul 11, 2023 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 19. Noes 0.) (July 11). Re-referred to Com. on APPR. |
| Jul 6, 2023 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & P. |
| Jun 27, 2023 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & P. |
| Jun 8, 2023 | Referred to Com. on B. & P. |
| May 31, 2023 | In Assembly. Read first time. Held at Desk. |
| May 30, 2023 | Read third time. Passed. (Ayes 40. Noes 0. Page 1366.) Ordered to the Assembly. |
| May 26, 2023 | Ordered to special consent calendar. |
| May 22, 2023 | Read second time. Ordered to third reading. |
| May 18, 2023 | Read second time and amended. Ordered to second reading. |
| May 18, 2023 | From committee: Do pass as amended. (Ayes 7. Noes 0. Page 1185.) (May 18). |
| May 12, 2023 | Set for hearing May 18. |
| May 8, 2023 | May 8 hearing: Placed on APPR suspense file. |
| May 2, 2023 | Set for hearing May 8. |
| Apr 27, 2023 | Read second time and amended. Re-referred to Com. on APPR. |
| Apr 26, 2023 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 13. Noes 0. Page 854.) (April 24). |
| Mar 6, 2023 | Set for hearing April 24. |
| Mar 1, 2023 | Referred to Com. on B., P. & E. D. |
| Feb 21, 2023 | From printer. May be acted upon on or after March 20. |
| Feb 17, 2023 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
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Date
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Description
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Location
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Votes
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| Sep 14, 2023 | Unfinished Business SB814 Roth et al. Concurrence | Senate Floor |
Passed |
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| Sep 13, 2023 | SB 814 Roth Senate Third Reading By Berman | Assembly Floor |
Passed |
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| Sep 1, 2023 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
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| Jul 11, 2023 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Business and Professions |
Passed |
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| May 30, 2023 | Special Consent SB814 Roth et al. | Senate Floor |
Passed |
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| May 18, 2023 | Do pass as amended | Senate Standing Committee on Appropriations |
Passed |
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| May 8, 2023 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
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| Apr 24, 2023 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Business, Professions and Economic Development |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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| California Moving And Storage Association | ** Support |
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 814 |
UNFINISHED BUSINESS
Bill No: SB 814
Author: Roth (D), et al.
Amended: 7/6/23
Vote: 21
SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 13-0, 4/24/23
AYES: Roth, Nguyen, Alvarado-Gil, Archuleta, Ashby, Becker, Dodd, Eggman, Glazer, Niello, Smallwood-Cuevas, Wahab, Wilk
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/18/23
AYES: Portantino, Jones, Ashby, Bradford, Seyarto, Wahab, Wiener
SENATE FLOOR: 40-0, 5/30/23
AYES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk
ASSEMBLY FLOOR: 80-0, 9/13/23 - See last page for vote
SUBJECT: Household Goods and Services
SOURCE: Author
DIGEST:
This bill requires the Bureau of Household Goods and Services (BHGS or Bureau) to post specified information on its internet website within a designated timeframe, subjects the BHGS to legislative review as if the BHGS were scheduled to be repealed on January 1, 2028, makes an Electronic and Appliance Repair (EAR) registration that is not renewed within six years to be canceled, as specified, permits certain licenses to be issued to a Limited Liability Company (LLC), as specified, merges the funds of the BHGS into one single fund, and deletes a requirement for the BHGS to review the financial resources of an applicant for a Household Movers (HHM) permit.
Assembly Amendments merge the three separate funds administered by the Bureau into one single fund; authorizes Bureau licensees to be LLCs and made other conforming and definitional changes to improve the efficiency of the laws governing Bureau regulated entities.
ANALYSIS:
Existing law:
- Establishes the BHGS within the jurisdiction of the DCA and sets the date for legislative oversight of the BHGS on January 1, 2024. (Business and Professions Code (BPC) § 9810)
- Establishes the EAR Law which requires licensure for those providing repair services for televisions, microwave ovens, audio and video playback equipment, video cameras, video games, copiers, computer systems, smart phones, tablets/ the repair and installation of auto stereo and alarm equipment, interlock ignition devices and residential satellite/antenna equipment, major home appliances, such as refrigerators, freezers, stoves/ovens, washer, dryers, dishwashers and trash compactors, and the sale and administration of service contracts for various consumer items sold or used for personal, family or household use. (BPC § 9800 et. seq.)
- Establishes the Home Furnishing and Thermal Insulation (HFTI) Act, which requires licensure of furniture and bedding manufacturers, importers, wholesalers, retailers, supply dealers, custom upholsterers, thermal insulation manufacturers, and bedding sanitizers. (BPC § 19000 et. seq.)
- Establishes the HHM Act with licensing and enforcement duties for HHMs. (BPC § 19225 et. seq.)
This bill:
- States that the BHGS must conduct spot check investigations of service dealers, as specified, no less than twice per year, and clarifies that the BHGS can post required regulatory information available on its internet website.
- States that an EAR registration that is not renewed within six years is canceled, but if the holder submits a new application and meets specified requirements, the registration may be reinstated.
- Deletes the requirement for the BHGS to review an applicant’s financial resources, integrity, ability, and knowledge to issue a permit as a HHM.
- Subjects the BHGS to review by the appropriate Legislative policy committees as if the BHGS were scheduled to be repealed on January 1, 2028.
- Extends the operation of various provisions relating to service contractors from January 1, 2024, to January 1, 2028.
- Permits specified licensees to obtain a license as a LLC, as specified.
- Merges the three funds of the BHGS into one single Household Goods and Services Fund by July 1, 2026.
- Makes other technical, updating and conforming changes.
Background
In early 2023, the Senate Business, Professions and Economic Development Committee and the Assembly Committee on Business and Professions (Committees) began their comprehensive sunset review oversight of eight regulatory entities. This bill and the accompanying sunset bills are intended to implement legislative changes as recommended by staff of the Committees, and which are reflected in the Background Papers prepared by Committee staff for each agency and program reviewed this year.
BHGS is responsible of the oversight and regulation of the EAR Law (BPC §§ 9800 et seq.), the Home Furnishings and Thermal Insulation Act (BPC §§ 19000 et seq.), and the Household Movers Act (BPC §§ 19225 et seq.). Although the Bureau administers three practice acts, the Bureau’s regulatory structure is divided into four distinct areas of regulation: (1) home furnishings and thermal insulation, (2) electronic and appliance repair, (3) service contracts, and (4) household movers.
The BHGS was reviewed as part of the sunset review program in 2018 and 2022. Due to the constraints of the COVID-19 pandemic on legislative business, the legislature extended the BHGS’s sunset review date, by one year, until January 1, 2023, in order to allow for a comprehensive review schedule. The following are some of the issues pertaining to the BHGS along with background information concerning the particular issue.
BPC Section 19239(a) requires a HHM applicant to establish the ability and reasonable financial responsibility to initiate the proposed operations. Further, BPC Section 19239(g) specifies for the bureau to issue a permit only to those applicants who it finds have demonstrated that they possess sufficient knowledge, ability, integrity, and financial resources and responsibility to perform the service within the scope of their application. The Bureau reports that it is not equipped to determine whether an applicant is financially responsible or has sufficient financial resources, and in order to do so would need to perform some form of credit check and/or financial audit of all applicants. To do so would increase Bureau costs and time to process applications. In addition, it is not clear to the Bureau as to what level of documentation would be necessary or what amount of resources would be deemed “sufficient.” As a result, the Bureau is requesting BPC Section 19239(g) be deleted from statute entirely.
Existing renewal requirements under the EAR program do not provide a timeframe for which a registration remains expired and is no longer accruing delinquency fees. By comparison, existing HFTI law prohibits an expired license from being renewed after six years of the license expiring (BPC § 19170.5). The Bureau recommends updating EAR provisions to be consistent with BPC Section 19170.5 (HFTI program) to state that a registration not renewed within six years of expiration shall not be renewed, restored, reinstated, or reissued so that renewal and delinquency fees are not accrued indefinitely. The Bureau also recommends updating HFTI provisions, which require a business pay all renewal, delinquency, and penalty fees accrued for six years although the business is required to apply for a new license.
Because the Bureau administers three separate funds, there may be duplicate administrative work, such as reviewing separate fund expenditure and revenue reports, and separating each application, audit report, or fine to make sure it was charged to the appropriate fund. With the recent addition of the HHM fund, performing budget, accounting, and administrative Bureau functions is becoming increasingly onerous on staff time and resources. This bill merges the three funds into one single Household Goods and Services Fund and sunsets the old funds.
There may be a number of non-substantive, technical changes, or statutory updates which many improve operations and efficiencies of the Bureau. Since the Bureau’s last sunset review in 2018, there have been at least nine separate pieces of legislation that affect the Bureau and its operations, not including the transition and regulation of an entirely new licensing group. There may be a number of statutory revisions, which need to be made to ensure the Bureau’s three practice acts, and four regulatory classifications are up-to-date.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Assembly Committee on Appropriations, the bill will result in ongoing costs of approximately $13.6 million annually to support the continued operation of BHGS’s licensing and enforcement activities until 2028. BHGS anticipates negligible costs to comply with the changes in this bill, which BHGS indicates are minor and technical. DCA’s Office of Information Services estimates costs of $24,000 to build license reinstatement functionality in BHGS’s IT system which are absorbable in existing resources.
SUPPORT: (Verified 9/12/23)
California Moving and Storage Association
OPPOSITION: (Verified 9/12/23)
None received
ARGUMENTS IN SUPPORT: The California Moving and Storage Association writes that it wholeheartedly supports continuing the role of BHGS and the requested changes to the HHM.
ASSEMBLY FLOOR: 80-0, 9/13/23
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
Prepared by: Elissa Silva / B., P. & E.D. / 916-651-4104
9/14/23 10:04:09
**** END ****
SENATE THIRD READING
STR Bill Id:SB 814
Author:(Roth)
As Amended Ver:July 6, 2023
Majority vote
SUMMARY
Extends the sunset date for the Bureau of Household Goods and Services (BHGS), establishes the Household Goods and Services Fund, and makes additional technical changes, statutory improvements, and policy reforms in response to issues raised during BHGS's sunset review oversight process.
Major Provisions
- Subjects BHGS to review by the Legislature as if it were to be sunset on January 1, 2028.
- Consolidates the Household Movers Fund, Home Furnishings and Thermal Insulation Fund, and the Electronic and Appliance Repair Fund into a single, new Household Goods and Services Fund beginning July 1, 2026, and makes numerous conforming changes.
- Updates numerous definitions.
- Extends the operation of various provisions relating to service contractors from January 1, 2024, to January 1, 2028.
- Adds limited liability companies to the list of entities covered by the Home Furnishing and Thermal Insulation Act for purposes of licensure and to the definition of "corporation" for purposes of licensure and regulation under the Household Movers Act.
- Requires BHGS to conduct spot check investigations of service dealers throughout the state no less than twice per year.
- Authorizes BHGS to post on its website the laws and regulations pertaining to service dealers and service contractors in lieu of distributing a copy to each service dealer or service contractor.
- Authorizes BHGS to impose conditions on the renewal of a service contractor's expired registration.
- Requires a registration that is not renewed within six years to be cancelled. However, if the registrant submits a new application and meets specified requirements, the registration may be reissued or reinstated.
- Deletes the requirement that BHGS issue a household mover permit to only those applicants it finds to have demonstrated that they possess sufficient knowledge, ability, integrity, and financial resources and responsibility to perform the service within the scope of their application.
- Deletes the requirement that the manufacturer of specified products sold in California retain documentation to show whether flame-retardant chemicals were added and makes conforming changes.
- Deletes obsolete language and makes other technical, non-substantive changes.
COMMENTS
Sunset review. In order to ensure that California's myriad professional boards and bureaus are meeting the state's public protection priorities, authorizing statutes for these regulatory bodies are subject to statutory dates of repeal, at which point the entity "sunsets" unless the date is extended by the Legislature. The sunset process provides a regular forum for discussion around the successes and challenges of various programs and the consideration of proposed changes to laws governing the regulation of professionals. Currently, the sunset review process applies to approximately three dozen different boards and bureaus under the Department of Consumer Affairs, as well as the Department of Real Estate and three nongovernmental nonprofit councils.
On a schedule averaging every four years, each entity is required to present a report to the Legislature's policy committees, which in return prepare a comprehensive background paper on the efficacies and efficiencies of their licensing and enforcement programs. Both the Administration and regulated professional stakeholders actively engage in this process. Legislation is then subsequently introduced extending the repeal date for the entity along with any reforms identified during the sunset review process.
Bureau of Household Goods and Services. BHGS is responsible of the oversight and regulation of the Electronic and Appliance Repair Law (Business and Professions Code (BPC) sections 9800 et seq.), the Home Furnishings and Thermal Insulation Act (BPC sections 19000 et seq.), and the Household Movers Act (BPC sections 19225 et seq.). Although BHGS administers three practice acts, BHGS's regulatory structure is divided into four distinct areas of regulation: 1) home furnishings and thermal insulation, 2) electronics and appliance repair, 3) service contracts, and 4) household movers.
Unlike most regulatory programs within the Department of Consumer Affairs that license or register individuals, BHGS licenses and registers businesses such as furniture and bedding manufacturers, appliance service dealers, and household movers. The current mission statement of BHGS as noted in its recent 2022 Sunset Review Report is "to protect and serve consumers while ensuring a fair and competitive market."
The Senate Committee on Business, Professions and Economic Development and the Assembly Committee on Business and Professions (the Committees) last reviewed BHGS through the sunset review oversight process in 2018. BHGS was originally scheduled to be reviewed again in 2022, but due to the COVID-19 pandemic and strains on the Legislature in 2019 and 2020, BHGS was granted an additional one-year extension to balance workload and ensure an appropriate and thoughtful legislative review of the program. This bill makes numerous technical changes, statutory improvements, and policy reforms in response to issues raised during BHGS's sunset review oversight process. For a full discussion of the issues raised during BHGS's sunset review earlier this year, please refer the Committees' sunset review background paper available online: https://abp.assembly.ca.gov/jointsunsethearings.
According to the Author
"In early 2023, the Senate Business, Professions and Economic Development Committee and the Assembly Committee on Business and Professions (Committees) began their comprehensive sunset review oversight of eight regulatory entities including the Board. The Committees conducted two oversight hearings in March of this year. This bill and the accompanying sunset bills are intended to implement legislative changes as recommended by staff of the Committees and which are reflected in the Background Papers prepared by Committee staff for each agency and program reviewed this year."
Arguments in Support
The California Moving and Storage Association writes in support:
When BHGS absorbed the moving and storage industry, oversight and enforcement of our industry improved and we have seen an increase in activities against unlicensed, illegal movers. BHGS has been a willing partner for our industry and an effective oversight body. We wholeheartedly support continuing the role of BHGS and the requested changes to the Household Movers Act.
Arguments in Opposition
None on file.
FISCAL COMMENTS
According to the Assembly Appropriations Committee:
- Ongoing costs of approximately $13.6 million annually (Electronic and Appliance Repair Fund, Home Furnishings and Thermal Insulation Fund, and Household Movers Fund) to support the continued operation of BHGS's licensing and enforcement activities until 2028. BHGS is funded by regulatory and license fees and is independent of the state General Fund.
- BHGS anticipates negligible costs to comply with the changes in this bill, which BHGS indicates are minor and technical.
- DCA's Office of Information Services (OIS) estimates costs of $24,000 to build license reinstatement functionality in BHGS's IT system. OIS indicates these costs are absorbable within existing resources. OIS notes a delayed implementation date of July 1, 2024, may be required to allow for the completion of IT work.
VOTES
SENATE FLOOR: 40-0-0
YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk
ASM BUSINESS AND PROFESSIONS: 19-0-0
YES: Berman, Flora, Alanis, Aguiar-Curry, Bains, Bonta, Chen, Dixon, Gipson, Grayson, Irwin, Jackson, Lee, Lowenthal, McCarty, McKinnor, Stephanie Nguyen, Joe Patterson, Ting
ASM APPROPRIATIONS: 16-0-0
YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Pellerin, Sanchez, Soria, Weber, Wilson
UPDATED
VERSION: July 6, 2023
CONSULTANT: Kaitlin Curry / B. & P. / (916) 319-3301 FN: 0001486
Date of Hearing: August 16, 2023
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Chris Holden, Chair
SBPCA Bill Id:SB 814
Author:(Roth) – As Amended Ver:July 6, 2023
Policy Committee: | Business and Professions | Vote: | 19 - 0 |
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Urgency: No State Mandated Local Program: Yes Reimbursable: No
SUMMARY:
This bill extends the sunset date for the Bureau of Household Goods and Services (BHGS), within the Department of Consumer Affairs (DCA), by four years, to January 1, 2028, and makes technical and other changes in response to issues raised during the BHGS’s sunset review oversight process.
Specifically, this bill:
- Extends the operation of BHGS until January 1, 2028.
- Modifies the definitions of “electronic set,” “appliance,” and “video game” to modernize the applicability of the Electronic and Appliance Repair Dealer Registration Law, as it pertains to repairs, services and maintenance by service dealers covered under the law.
- Requires BHGS to perform spot check investigations of service dealers at least twice a year, and clarifies that regulatory information required to be distributed by BHGS to each registered service dealer can alternatively be posted on BHGS’s website.
- Authorizes BHGS to impose conditions on the renewal of an expired registration of a service contractor under the Electronic and Appliance Repair Dealer Registration Law.
- Requires BHGS to cancel a registration of a service contractor not renewed within six years of its expiration, and allows the registration to be reissued or reinstated if the holder of the canceled registration submits a new application and meets certain requirements.
- Adds “limited liability company” to the list of entities covered by the Home Furnishing and Thermal Insulation Act for purposes of licensure and to the definition of “corporation” for purposes of licensure and regulation under the Household Movers Act.
- Deletes the requirement that a manufacturer of a covered product sold in California retain documentation showing whether flame retardant chemicals were added.
- Deletes the requirement that BHGS issue a household mover permit to only those applicants it finds have demonstrated they possess sufficient knowledge, ability, integrity, and financial resources and responsibility to perform the service within the scope of their application.
- Consolidates various special funds under BHGS into a single Household Goods and Services Fund by July 1, 2026.
FISCAL EFFECT:
- Ongoing costs of approximately $13.6 million annually (Electronic and Appliance Repair Fund, Home Furnishings and Thermal Insulation Fund, and Household Movers Fund) to support the continued operation of BHGS’s licensing and enforcement activities until 2028. BHGS is funded by regulatory and license fees and is independent of the state General Fund.
- BHGS anticipates negligible costs to comply with the changes in this bill, which BHGS indicates are minor and technical.
- DCA’s Office of Information Services (OIS) estimates costs of $24,000 to build license reinstatement functionality in BHGS’s IT system. OIS indicates these costs are absorbable within existing resources. OIS notes a delayed implementation date of July 1, 2024, may be required to allow for the completion of IT work.
COMMENTS:
- Purpose. This bill, the sunset extension bill for BHGS, is authored by the Chair of the Senate Committee on Business, Professions, and Economic Development as part of the committee’s review of the authorities and activities of the boards and bureaus under DCA. According to the author:
In early 2023, the Senate Business, Professions and Economic Development Committee and the Assembly Committee on Business and Professions (Committees) began their comprehensive sunset review oversight of eight regulatory entities including the [BHGS]. The Committees conducted two oversight hearings in March of this year. This bill and the accompanying sunset bills are intended to implement legislative changes as recommended by staff of the Committees and which are reflected in the Background Papers prepared by Committee staff for each agency and program reviewed this year.
- Background. BHGS is responsible of the oversight and regulation of the Home Furnishings and Thermal Insulation Act, the Electronic and Appliance Repair Law, and the Household Movers Act. Although the BHGS administers three practice acts, its regulatory structure is divided into four distinct areas:
- Home furnishings and thermal insulation. This program oversees and regulates furniture and bedding manufacturers, importers, wholesalers, retailers, supply dealers, custom upholsterers, thermal insulation manufacturers, and bedding sanitizers.
- Electronic and appliance repair. This program oversees the repair of televisions, microwave ovens, audio and video playback equipment, video cameras, video games, copiers, computer systems, smart phones, tablets, the repair and installation residential satellite or antenna equipment, major home appliances, such as refrigerators, freezers, microwave ovens, washer, dryers, dishwashers and trash compactors, and the sale and administration of service contracts for various consumer items sold or used for personal, family, household or home office use.
- Household movers. The Household Movers Act provides for the licensure and regulation of household movers, including corporations and persons. SB 19 (Hill) Chapter 421, Statutes of 2017, transferred licensing and enforcement duties for household movers from the California Public Utilities Commission (CPUC) to BHGS beginning July 1, 2018.
- Service contracts. BHGS also regulates registered service contractors who sell contracts for the repair of specified consumer products in California. Retailers are required to hold a valid registration in order to act as a service contract seller. Service contracts generally provide for pre-paid repair or replacement of specified consumer products.
- Related Legislation. This bill is one of eight sunset review bills moving through the legislative process this session. SBs 812, 813, and 815, also authored by Senator Roth, are pending in this committee. ABs 1262 and 1263, authored by the Assembly Business and Professions Committee, and AB 1257 and 1264, authored by Assemblymember Berman, Chair of the Assembly Business and Professions Committee, are pending in the Senate Appropriations Committee.
- Prior Legislation. SB 1443 (Roth), Chapter 625, Statutes of 2022, extended provisions of the Electronic and Appliance Service Dealer Registration Law that would have been repealed on January 1, 2023, to accommodate the one-year sunset review postponement.
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
Date of Hearing: July 11, 2023
ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
Marc Berman, Chair
SBPCA Bill Id:SB 814
Author:(Roth) – As Amended Ver:June 27, 2023
SENATE VOTE: 40-0
SUBJECT: Household goods and services
SUMMARY: Extends the sunset date for the Bureau of Household Goods and Services (BHGS) until January 1, 2028 and makes additional technical changes, statutory improvements, and policy reforms in response to issues raised during the BHGS’s sunset review oversight process.
EXISTING LAW:
- Establishes the BHGS within the jurisdiction of the Department of Consumer Affairs (DCA) and provides that the BHGS shall be subject to legislative oversight as though it were scheduled to be repealed on January 1, 2024. (Business and Professions Code (BPC) § 9810)
- Establishes the Electronic and Appliance Repair (EAR) Law, which requires licensure for those providing repair services for televisions, microwave ovens, audio and video playback equipment, video cameras, video games, copiers, computer systems, smart phones, tablets/ the repair and installation of auto stereo and alarm equipment, interlock ignition devices and residential satellite/antenna equipment, major home appliances, such as refrigerators, freezers, stoves/ovens, washer, dryers, dishwashers and trash compactors, and the sale and administration of service contracts for various consumer items sold or used for personal, family or household use. (BPC §§ 9800 et seq.)
- Establishes the Home Furnishing and Thermal Insulation (HFTI) Act, which requires licensure of furniture and bedding manufacturers, importers, wholesalers, retailers, supply dealers, custom upholsterers, thermal insulation manufacturers, and bedding sanitizers. (BPC §§ 19000 et seq.)
- Establishes the Household Movers (HHM) Act with licensing and enforcement duties for HHMs. (BPC §§ 19225 et seq.)
THIS BILL:
- Extends the operation of the BHGS until January 1, 2028.
- Expands the definition of “appliance” to mean any device primarily used for residential purposes, including an ice-maker, dehumidifier, and portable residential furnace.
- Expands the definitions within the “electronic set” to include a cellular device or any other device that depends for its functioning on digital electronics.
- Expands the definition of “appliance” to include any device primarily used for residential purposes, including an icemaker, dehumidifier, and portable residential furnace.
- Updates definition of “video game” by removing the requirement that it has its own cathode ray tube, television set, or monitor.
- Requires the BHGS to perform spot check investigations of service dealers at least twice a year and clarifies that required regulatory information can be posted on the BHGS’s website.
- Authorizes the BHGS to impose conditions on an EAR dealer registration.
- Provides that an EAR dealer registration that is not renewed within six years of its expiration shall be canceled, but if the holder of the registration submits a new application and meets specified requirements, the registration may be reissued or reinstated.
- Authorizes professions regulated by the BHGS to start the process for licensure as limited liability companies (LLCs).
- Consolidates the BHGS’s various special funds into a single Household Goods and Services Fund by July 1, 2026.
- Makes other technical and nonsubstantive changes.
FISCAL EFFECT: According to the Senate Appropriation Committee’s fiscal analysis, the BHGS reports no additional fiscal impact to comply with the spot check investigation provisions of this bill, as the bureau already conducts these investigations twice per year. BHGS anticipates other workload to reinstate expired licenses to be absorbable. The Office of Information Services (OIS) reports an estimated cost of $24,000 to build license reinstatement functionality in BHGS’s IT system, which may be absorbed by the redirection of existing maintenance resources. OIS notes a delayed implementation date of July 1, 2024 may be required to allow for the completion of this IT work.
COMMENTS:
Purpose. This bill is sponsored by the author. According to the author:
“In early 2023, the Senate Business, Professions and Economic Development Committee and the Assembly Committee on Business and Professions (Committees) began their comprehensive sunset review oversight of eight regulatory entities including the Board. The Committees conducted two oversight hearings in March of this year. This bill and the accompanying sunset bills are intended to implement legislative changes as recommended by staff of the Committees and which are reflected in the Background Papers prepared by Committee staff for each agency and program reviewed this year.”
Background.
Sunset review. In order to ensure that California’s myriad professional boards and bureaus are meeting the state’s public protection priorities, authorizing statutes for these regulatory bodies are subject to statutory dates of repeal, at which point the entity “sunsets” unless the date is extended by the Legislature. The sunset process provides a regular forum for discussion around the successes and challenges of various programs and the consideration of proposed changes to laws governing the regulation of professionals. Currently, the sunset review process applies to approximately three dozen different boards and bureaus under the DCA, as well as the Department of Real Estate and three nongovernmental nonprofit councils.
On a schedule averaging every four years, each entity is required to present a report to the Legislature’s policy committees, which in return prepare a comprehensive background paper on the efficacy and efficiency of their licensing and enforcement programs. Both the Administration and regulated professional stakeholders actively engage in this process. Legislation is then subsequently introduced extending the repeal date for the entity along with any reforms identified during the sunset review process. This is the BHGS’s sunset bill.
Bureau of Household Goods and Services. The DCA and BHGS shared mission is to protect and serve California consumers while maintaining a fair and competitive market. BHGS provides consumer protection by enforcing the provisions of the EAR Law, the Home Furnishings and Thermal Insulation Act, and the Household Movers (HFTI) Act. Although BHGS administers three practice acts, it is bifurcated into four distinct areas of regulation: home furnishings and thermal insulation, electronic, and appliance repair, service contracts, and household movers.
As discussed in the BHGS’s 2022 Sunset report, the combination of the regulatory entities mentioned and the combination of resources between the two provided cost savings. BHFTI and BEAR were housed together and placed under the oversight of one Chief in the late 1990s. As time went on, units within the Bureaus consolidated and staff cross-trained, sharing the workload. In 2009, Assembly Bill (AB) X4 20 officially merged the two bureaus, which was renamed the Bureau of Electronic and Appliance Repair, Home Furnishings and Thermal Insulation. SB 19 created the Division of Household Movers within the Bureau and augmented the Bureau’s existing workforce by providing additional licensing, enforcement, and administrative positions to effectively regulate the moving industry and protect consumers. The Bureau recruited additional staff, while providing cross-training and opportunities for existing staff to affect the implementation of the new program. This was done while maintaining a high level of service for the existing programs.
Beginning January 1, 2019, SB 1483, (Hill, Chapter 578, Statutes of 2018) renamed the Bureau to the “Bureau of Household Goods and Services” (BHGS) to convey the addition of household movers to the Bureau’s scope. BHGS currently licenses and regulates over 41,000 companies across the globe from small single-person businesses to major corporations. BHGS currently has a combined staff of over 60 employees who license, register, and permit companies, handle consumer complaints, inspect businesses, ensure compliance with laws and regulations, conduct investigations, test products to determine whether they meet BHGS and federal standards, and initiate disciplinary action against companies that commit violations.
The statutory changes proposed in this sunset measure are recommends from BHGS and articulated through its thorough 2022 Sunset Review Report. Many of the statutory changes included in the bill are technical, yet important for its internal operations and appropriate oversight of BHGS and communication, education, and jurisdiction over its licensed populations. This bill provides necessary technical cleanup, which authorizes BHGS the appropriate authority and oversight and continue its role protecting consumers and its licensed workforce for all Californians.
Prior Related Legislation.
AB 2956 (Committee on Transportation, Chapter 295, Statutes of 2022) amends various sections of the Vehicle Code changing references from the Commission to the Bureau, Public Utilities Code to Business and Professions Code, and other amendments to recognize the transfer of the Household Movers Act to the Bureau.
SB 1443 (Roth, Chapter 625, Statutes of 2022) extends provisions of the Electronic and Appliance Service Dealer Registration Law that would have been repealed on January 1, 2023, to accommodate the one-year sunset review postponement.
REGISTERED SUPPORT:
California Moving & Storage Association
REGISTERED OPPOSITION:
None on file.
Analysis Prepared by: Annabel Smith / B. & P. / (916) 319-3301
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 814 |
THIRD READING
Bill No: SB 814
Author: Roth (D), et al.
Amended: 5/18/23
Vote: 21
SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 13-0, 4/24/23
AYES: Roth, Nguyen, Alvarado-Gil, Archuleta, Ashby, Becker, Dodd, Eggman, Glazer, Niello, Smallwood-Cuevas, Wahab, Wilk
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/18/23
AYES: Portantino, Jones, Ashby, Bradford, Seyarto, Wahab, Wiener
SUBJECT: Household goods and services
SOURCE: Author
DIGEST:
This bill requires the Bureau of Household Goods and Services (BHGS or Bureau) to post specified information on its internet website within a designated timeframe, subjects the BHGS to legislative review as if the BHGS were scheduled to be repealed on January 1, 2028, makes an Electronic and Appliance Repair (EAR) registration that is not renewed within six years to be canceled, as specified, and deletes a requirement for the BHGS to review the financial resources of an applicant for a Household Movers (HHM) permit.
ANALYSIS:
Existing law:
- Establishes the BHGS within the jurisdiction of the DCA and sets the date for legislative oversight of the BHGS on January 1, 2024. (Business and Professions Code (BPC) § 9810)
- Establishes the EAR Law which requires licensure for those providing repair services for televisions, microwave ovens, audio and video playback equipment, video cameras, video games, copiers, computer systems, smart phones, tablets/ the repair and installation of auto stereo and alarm equipment, interlock ignition devices and residential satellite/antenna equipment, major home appliances, such as refrigerators, freezers, stoves/ovens, washer, dryers, dishwashers and trash compactors, and the sale and administration of service contracts for various consumer items sold or used for personal, family or household use. (BPC § 9800 et. seq.)
- Establishes the Home Furnishing and Thermal Insulation (HFTI) Act, which requires licensure of furniture and bedding manufacturers, importers, wholesalers, retailers, supply dealers, custom upholsterers, thermal insulation manufacturers, and bedding sanitizers. (BPC § 19000 et. seq.)
- Establishes the Household Movers (HHM) Act with licensing and enforcement duties for HHMs. (BPC § 19225 et. seq.)
This bill:
- States that the BHGS must conduct spot check investigations of service dealers, as specified, no less than twice per year, and clarifies that the BHGS can post required regulatory information available on its internet website.
- States that an EAR registration that is not renewed within six years is canceled, but if the holder submits a new application and meets specified requirements, the registration may be reinstated.
- Deletes the requirement for the BHGS to review an applicant’s financial resources, integrity, ability, and knowledge to issue a permit as a HHM.
- Subjects the BHGS to review by the appropriate Legislative policy committees as if the BHGS were scheduled to be repealed on January 1, 2028.
- Extends the operation of various provisions relating to service contractors from January 1, 2024, to January 1, 2028.
- Makes other technical and conforming changes.
Background
In early 2023, the Senate Business, Professions and Economic Development Committee and the Assembly Committee on Business and Professions (Committees) began their comprehensive sunset review oversight of eight regulatory entities. This bill and the accompanying sunset bills are intended to implement legislative changes as recommended by staff of the Committees, and which are reflected in the Background Papers prepared by Committee staff for each agency and program reviewed this year.
BHGS is responsible of the oversight and regulation of the EAR Law (BPC §§ 9800 et seq.), the Home Furnishings and Thermal Insulation Act (BPC §§ 19000 et seq.), and the Household Movers Act (BPC §§ 19225 et seq.). Although the Bureau administers three practice acts, the Bureau’s regulatory structure is divided into four distinct areas of regulation: (1) home furnishings and thermal insulation, (2) electronic and appliance repair, (3) service contracts, and (4) household movers.
The BHGS was reviewed as part of the sunset review program in 2018 and 2022. Due to the constraints of the COVID-19 pandemic on legislative business, the legislature extended the BHGS’s sunset review date, by one year, until January 1, 2023, in order to allow for a comprehensive review schedule. The following are some of the issues pertaining to the BHGS along with background information concerning the particular issue.
BPC Section 19239(a) requires a HHM applicant to establish the ability and reasonable financial responsibility to initiate the proposed operations. Further, BPC Section 19239(g) specifies for the bureau to issue a permit only to those applicants who it finds have demonstrated that they possess sufficient knowledge, ability, integrity, and financial resources and responsibility to perform the service within the scope of their application. The Bureau reports that it is not equipped to determine whether an applicant is financially responsible or has sufficient financial resources, and in order to do so would need to perform some form of credit check and/or financial audit of all applicants. To do so would increase Bureau costs and time to process applications. In addition, there is no clear direction or understanding from the Bureau as to what level of documentation would be necessary or what amount of resources would be deemed “sufficient.” As a result, the Bureau is requesting BPC Section 19239(g) be deleted from statute entirely.
Existing renewal requirements under the EAR program do not provide a timeframe for which a registration remains expired and is no longer accruing delinquency fees. By comparison, existing HFTI law prohibits an expired license from being renewed after six years of the license expiring (BPC § 19170.5). The Bureau recommends updating EAR provisions to be consistent with BPC Section 19170.5 (HFTI program) to state that a registration not renewed within six years of expiration shall not be renewed, restored, reinstated, or reissued so that renewal and delinquency fees are not accrued indefinitely. The Bureau also recommends updating HFTI provisions, which require a business pay all renewal, delinquency, and penalty fees accrued for six years although the business is required to apply for a new license.
There may be a number of non-substantive, technical changes, or statutory updates which many improve operations and efficiencies of the Bureau. Since the Bureau’s last sunset review in 2018, there have been at least nine separate pieces of legislation that affect the Bureau and its operations, not including the transition and regulation of an entirely new licensing group. There may be a number of statutory revisions, which need to be made to ensure the Bureau’s three practice acts, and four regulatory classifications are up-to-date.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Senate Appropriations Committee, the 2023-24 Governor’s Budget provides approximately $13.6 million and 68.9 positions to support the continued operation of the BHGS’s licensing and enforcement activities. The BHGS reports no additional fiscal impact to comply with the spot check investigation provisions of this bill, as the bureau already conducts these investigations twice per year. BHGS anticipates other workload to reinstate expired licenses to be absorbable. The Office of Information Services reports an estimated cost of $24,000 to build license reinstatement functionality in BHGS’s IT system, which may be absorbed by the redirection of existing maintenance resources. OIS notes a delayed implementation date of July 1, 2024 may be required to allow for the completion of this IT work.
SUPPORT: (Verified 5/18/23)
None received
OPPOSITION: (Verified 5/18/23)
None received
Prepared by: Elissa Silva / B., P. & E.D. / 916-651-4104
5/23/23 13:28:36
**** END ****
SENATE COMMITTEE ON APPROPRIATIONS
Senator Anthony Portantino, Chair
2023 - 2024 Regular Session
SB 814 (Roth) - Household goods and services: household movers
Version: April 27, 2023 | Policy Vote: B., P. & E.D. 13 - 0 |
Urgency: No | Mandate: No |
Hearing Date: May 18, 2023 | Consultant: Janelle Miyashiro |
Bill Summary:
SB 814 is the sunset bill for the Bureau of Household Goods and Services (BHGS) and makes changes recommended during the joint sunset review of the BHGS.
*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on May 18, 2023
Fiscal Impact:
The 2023-24 Governor’s Budget provides approximately $13.6 million (Electronic and Appliance Repair Fund; Home Furnishings and Thermal Insulation Fund; and Household Movers Fund) and 68.9 positions to support the continued operation of the BHGS’s licensing and enforcement activities.
The BHGS reports no additional fiscal impact to comply with the spot check investigation provisions of this bill, as the bureau already conducts these investigations twice per year. BHGS anticipates other workload to reinstate expired licenses to be absorbable.
The Office of Information Services (OIS) reports an estimated cost of $24,000 to build license reinstatement functionality in BHGS’s IT system, which may be absorbed by the redirection of existing maintenance resources. OIS notes a delayed implementation date of July 1, 2024 may be required to allow for the completion of this IT work.
Author Amendments:
- Subject the BHGS to review by the appropriate Legislative policy committees as if the BHGS were scheduled to be repealed on January 1, 2028.
- Extend the operation of various provisions relating to service contractors from January 1, 2024 to January 1, 2028.
- Make conforming changes.
-- END --
SENATE COMMITTEE ON
Senator Anthony Portantino, Chair
2023 - 2024 Regular Session
SB 814 (Roth) - Household goods and services: household movers
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
Bill Summary:
SB 814 is the sunset bill for the Bureau of Household Goods and Services (BHGS) and makes changes recommended during the joint sunset review of the BHGS.
Fiscal Impact:
The 2023-24 Governor’s Budget provides approximately $13.6 million (Electronic and Appliance Repair Fund; Home Furnishings and Thermal Insulation Fund; and Household Movers Fund) and 68.9 positions to support the continued operation of the BHGS’s licensing and enforcement activities.
The BHGS reports no additional fiscal impact to comply with the spot check investigation provisions of this bill, as the bureau already conducts these investigations twice per year. BHGS anticipates other workload to reinstate expired licenses to be absorbable.
The Office of Information Services (OIS) reports an estimated cost of $24,000 to build license reinstatement functionality in BHGS’s IT system, which may be absorbed by the redirection of existing maintenance resources. OIS notes a delayed implementation date of July 1, 2024 may be required to allow for the completion of this IT work.
Background:
BHGS is responsible of the oversight and regulation of the Electronic and Appliance Repair Law, the Home Furnishings and Thermal Insulation Act, and the Household Movers Act. Although the BHGS administers three practice acts, its regulatory structure is divided into four distinct areas of regulation: 1) home furnishings and thermal insulation, 2) electronic and appliance repair, 3) service contracts, and 4) household movers.
Proposed Law:
- States BHGS must conduct spot check investigations of service dealers on a continuous basis, but no less than twice per year.
- Clarifies that the BHGS can post required regulatory information on its internet website.
- Authorizes BHGS to impose conditions on an expired registration.
- Provides that a registration that is not renewed within six years of its expiration be canceled.
- Authorizes a registration that was cancelled to be reissued or reinstated if the registrant pays all accrued renewal, delinquency, and penalty fees and if no circumstances exist that would justify the denial of the registration.
- Deletes the requirement that BHGS issue permits only to those applicants who have demonstrated they possess sufficient knowledge, ability, integrity and financial resources and responsibility to perform the service within the scope of their application.
Related Legislation:
SB 812 (Roth, 2023) is the California Tax Education Council sunset bill. SB 812 is pending in this committee.
SB 813 (Roth, 2023) is the Structural Pest Control Board sunset bill. SB 813 is pending in this committee.
SB 815 (Roth, 2023) is the Medical Board of California sunset bill. SB 815 is pending in this committee.
AB 1257 (Assembly Business and Professions Committee, 2023) is the Dental Hygiene Board of California sunset bill. AB 1257 is pending in Assembly Appropriations Committee.
AB 1262 (Assembly Business and Professions Committee, 2023) is the Professional Fiduciaries Bureau sunset bill. AB 1262 is pending in Assembly Appropriations Committee.
AB 1263 (Assembly Business and Professions Committee, 2023) is the Bureau of Automotive Repair sunset bill. AB 1263 is pending in Assembly Appropriations Committee.
AB 1264 (Assembly Business and Professions Committee, 2023) is the California Acupuncture Board sunset bill. AB 1264 is pending in Assembly Appropriations Committee.
-- END --
SENATE COMMITTEE ON
BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
Senator Richard Roth, Chair
2023 - 2024 Regular
Bill No: SB 814 Hearing Date: April 24, 2023
Author: | Roth | ||
Version: |
| ||
Urgency: | Fiscal: | ||
Consultant: | |||
Subject: Bureau of Household Goods and Services: electronic and appliance repair
SUMMARY:
Requires the Bureau of Household Goods and Services (BHGS or Bureau) to post specified information on its internet website, within a designated timeframe, as specified.
Existing law:
- Establishes the BHGS within the jurisdiction of the DCA and sets the date for legislative oversight of the BHGS on January 1, 2024. (Business and Professions Code (BPC) § 9810)
- States that protection of the public is the highest priority for the BHGS when exercising its licensing, regulatory, and disciplinary functions and whenever the protection of the public is inconsistent with other interests sought to be promoted, protection of the public is paramount. (BPC § 9810.1)
- Establishes the Electronic and Appliance Repair (EAR) Law which requires licensure for those providing repair services for televisions, microwave ovens, audio and video playback equipment, video cameras, video games, copiers, computer systems, smart phones, tablets/ the repair and installation of auto stereo and alarm equipment, interlock ignition devices and residential satellite/antenna equipment, major home appliances, such as refrigerators, freezers, stoves/ovens, washer, dryers, dishwashers and trash compactors, and the sale and administration of service contracts for various consumer items sold or used for personal, family or household use. (BPC § 9800 et. seq.)
- Establishes the Home Furnishing and Thermal Insulation (HFTI) Act, which requires licensure of furniture and bedding manufacturers, importers, wholesalers, retailers, supply dealers, custom upholsterers, thermal insulation manufacturers, and bedding sanitizers. (BPC § 19000 et. seq.)
- Establishes the Household Movers (HHM) Act with licensing and enforcement duties for HHMs. (BPC § 19225 et. seq.)
- Requires the Director of DCA to gather evidence of violations of the EAR law, by any services dealer, as specified, and may conduct spot check investigations of services dealer on a continuous basis. (BPC § 9812)
This bill:
- States that the BHGS must conduct spot check investigations of service dealers, as specified, no less than twice per year.
- Clarifies that the BHGS can post required regulatory information available on its internet website.
FISCAL EFFECT:
Unknown. This bill is keyed fiscal by the Legislative Counsel.
COMMENTS:
- Purpose. This bill is one of four sunset bills sponsored by the Author. According to the Author, “this bill is necessary to make changes to the Bureau of Household Goods and Services in order to improve oversight of oversight of the regulated professions under the jurisdiction of the BHGS, including electronic and appliance repair dealers, home furnishing and thermal insulation, service contractors, and household movers.”
- Oversight Hearings and Sunset Review of Licensing Boards and Programs. In early 2023, the Senate Business, Professions and Economic Development Committee and the Assembly Committee on Business and Professions (Committees) began their comprehensive sunset review oversight of eight regulatory entities including the CCIDC. The Committees conducted three oversight hearings in March of this year. This bill and the accompanying sunset bills are intended to implement legislative changes as recommended by staff of the Committees, and which are reflected in the Background Papers prepared by Committee staff for each agency and program reviewed this year.
- Background on BHGS. BHGS is responsible of the oversight and regulation of the Electronic and Appliance Repair Law (BPC §§ 9800 et seq.), the Home Furnishings and Thermal Insulation Act (BPC §§ 19000 et seq.), and the Household Movers Act (BPC §§ 19225 et seq.). Although the Bureau administers three practice acts, the Bureau’s regulatory structure is divided into four distinct areas of regulation: 1) home furnishings and thermal insulation, 2) electronic and appliance repair, 3) service contracts, and 4) household movers.
The BHGS was established in 2009 with the enactment of ABX4 20 (Strickland, Chapter 18, Statutes of 2009). That bill merged the separate Bureau of Home Furnishings and Thermal Insulation and the Bureau of Electronic and Appliance Repair into one regulatory entity.
As a result of SB 19 (Hill, Chapter 421, Statutes of 2017), beginning July 1, 2018, the Bureau assumed the licensing and enforcement duties for HHMs, which were formally regulated by the Public Utilities Commission. Until 2018, the Bureau was named the Bureau of Electronic, Appliance Repair, Home Furnishings and Thermal Insulation to represent the merger of those two regulatory entities. SB 1483 (Hill, Chapter 578, Statutes of 2018) formally changed the name to the current Bureau of Household Goods and Services to better reflect the current licensing programs under the BHGS’s jurisdiction.
- Sunset Review of the BHGS. The BHGS was reviewed as part of the sunset review program in 2018 and 2022, and received a four-year extension of the review both times. Due to the constraints of the COVID-19 pandemic on legislative business, the legislature extended the BHGS’s sunset date, by one year, until January 1, 2023, in order to allow for a comprehensive review schedule. The following are some of the issues pertaining to the BHGS along with background information concerning the particular issue. Recommendations noted by Committee staff regarding the particular issue areas that needed to be addressed include the technical change. As the committees, the DCA, and stakeholders continue to discuss statutory changes necessary to improve operations at the BHGS, the following are issues likely to be addressed as raised during the Sunset Review Oversight Hearing of the BHGS, and those contained in the staff background paper.
a) Issue 3: Flame Retardant Chemical Document.
Background. BPC § 19094(c) requires furniture manufacturers to maintain documentation to show whether flame-retardant chemicals were added to their furniture materials. Statute permits a written statement by the supplier of each component covered by TB 117-2013 attesting that flame retardant chemicals are either contained or not contained in the item, to be sufficient documentation. However, the Bureau notes that under current practice, the ways in which manufacturers obtain raw materials, makes complying with the requirements specified in BPC § 19094(c) difficult for the Bureau to enforce.
As noted by the Bureau, licensees are not able to compel suppliers to provide such documentation in a manner consistent with statutes, and additionally have shifting suppliers for cover fabrics, foams, and other materials that are often overseas. In addition, these purchases are often transacted through other companies so that a furniture manufacturer never has a direct relationship with the producer of a product. This, along with the fact that the Bureau has no jurisdiction over the makers of these materials, makes enforcement of this provision difficult and often needlessly punitive.
Recommendation and Proposed Statutory Change. The Background Paper suggested The Bureau should advise the Committees on any potential problems it foresees with eliminating the flame retardant chemical documentation requirement. Ultimately, the Bureau recommends removing the documentation requirement.
b) Issue #5: Licensure for out of state movers.
Background. According to the Bureau’s 2022 Sunset Review Report, “Although existing law requires inter-state movers to obtain permits to operate in California, there are several unnecessary barriers to an out-of-state company obtaining a permit. For example, the Household Movers Act requires sole proprietor and partnership applicants to meet residency requirements (BPC section 19239, subd. (h)(1) and (2), respectively). Consequently, this requirement can deny affected businesses a path to licensure. The Household Movers Act also requires applicants to pass an examination to demonstrate possessing the requisite knowledge to operate as a household mover; however, the examination content is based wholly on the Tariff, which is not applicable to interstate moves. These permit requirements also do not allow the Bureau to recognize household movers that are permitted in their home state through reciprocity.”
Additionally, the BHGS reports when the regulatory structure for HHMs transferred to the BHGS from the PUC, there was an Act within the Public Utilities Code pertaining to the regulation of interstate movers that was not included in the transfer of the program. PUC §§ 3901-3950 is the Interstate and Foreign Motor Carriers of Household Goods and Passenger Act. The Bureau notes that a lack of clear statutory authority hinders the Bureau’s ability to regulate interstate movers and establish a registration program that is sufficient for businesses that are housed outside of California, but do moves into and out of California.
Recommendation and Proposed Statutory Change. The Bureau should advise the Committees on what statutory changes would be necessary to ensure the Bureau’s oversight of all HHM performing moves in California.
c) Issue# 6: Licensure for Limited Liability Companies.
Background. The Bureau raised the issue of licensing LLCs in its 2022 Sunset Review Report. Currently, none of the licensees/registrants under the Bureau’s jurisdiction can obtain a license as an LLC. Current law (CORP § 17701.04(b)) prohibits an LLC from providing “professional services” unless it is expressly authorized to do so in the BPC. “Professional Services” is defined as any type of professional services that may be lawfully rendered only pursuant to a license, certification, as specified, (CORP) § 13401(a)). In order to allow for a thorough evaluation of the potential for consumer harm without recourse when LLCs are licensed, legislative authorization is necessary. As noted by the Bureau, several HHM permit holders were issued licenses to an LLC under the regulatory authority of the PUC. As the Bureau seeks to re-evaluate the fee and renewal structure for the HHMs, adding a pathway to issuing a license to an LLC may be necessary. Since the early 2000s, there have been a number of bills passed by the Legislature, and signed into law, which have authorized a variety of professions to organize as LLCs and LLPs including, alarm companies, contractors, private investigators, engineers, land surveyors, and architects, among others.
Recommendation and Proposed Statutory Change. The Bureau should update the Committees on which licensees/registrants should be eligible for a LLC license and further indicate how it would ensure consumer protection is not impacted and how claims paid would be reported to the Bureau.
d) Issue #7: Financial Requirements for Household Movers.
Background. BPC § 19239(a) requires a HHM applicant to establish ability and reasonable financial responsibility to initiate the proposed operations. Further, BPC § 19239(g) specifies for the bureau to issue a permit only to those applicants who it finds have demonstrated that they possess sufficient knowledge, ability, integrity, and financial resources and responsibility to perform the service within the scope of their application. The Bureau reports that it is not currently equipped to adequately evaluate whether or not the applicant has the financial resources for operating as a HHM. Instead, the Bureau is more appropriately suited to evaluate whether or not the applicants have sufficient liability insurance, workers’ compensation coverage, as well as knowledge of their obligations to consumers during household moves, through an examination. The Bureau reports that it is not equipped to determine whether an applicant is financially responsible or has sufficient financial resources, and in order to do so would need to perform some form of credit check and/or financial audit of all applicants. To do so would increase Bureau costs and time to process applications. In addition, there is no clear direction or understanding from the Bureau as to what level of documentation would be necessary or what amount of resources would be deemed “sufficient.” As a result, the Bureau is requesting BPC § 19239(g) be deleted from statute entirely.
Recommendation and Proposed Statutory Change. The Bureau should advise about the challenges of including a financial assessment in the current application process.
e) Issue # 8: EAR and HFTI Licensure Expiration and Renewal.
Background. Existing renewal requirements under the EAR program do not provide a timeframe for which a registration remains expired and is no longer accruing delinquency fees. By comparison, existing HFTI law prohibits an expired license from being renewed after six years of the license expiring (BPC § 19170.5). The Bureau recommends updating EAR provisions to be consistent with BPC § 19170.5 (HFTI program) to state that a registration not renewed within six years of expiration shall not be renewed, restored, reinstated, or reissued so that renewal and delinquency fees are not accrued indefinitely. The Bureau also recommends updating HFTI provisions, which require a business pay all renewal, delinquency, and penalty fees accrued for six years although the business is required to apply for a new license. The Bureau believes that this change would remove a barrier to licensure especially to those that were legitimately out of business during the six-year period and would be unable to pay accumulating fees.
Recommendation and Proposed Statutory Change. The Bureau should advise the Committees on current issues with EAR registrations being expired and then renewing after an extended period
f) Issue#16: Technical Cleanup.
Background. There may be a number of non-substantive, technical changes, or statutory updates which many improve operations and efficiencies of the Bureau. Since the Bureau’s last sunset review in 2018, there have been at least nine separate pieces of legislation that affect the Bureau and its operations, not including the transition and regulation of an entirely new licensing group. There may be a number of statutory revisions, which need to be made to ensure the Bureau’s three practice acts, and four regulatory classifications are up-to-date. For example, as provided by the Bureau, definitions describing the products covered within the scope of the Bureau’s jurisdiction are outdated. This causes stakeholders to question the Bureau’s authority over certain products, encourages unlicensed activity, and requires the Bureau to repeatedly respond to inquiries to provide clarification over the Bureau’s jurisdiction. The terminology applicable to electronics and appliances mentioned in BPC § 9801 has not been updated since mid-1990s. New technology has come into existence since then making it unclear as to whether certain products are within the Bureau’s scope since definitions have not kept up with advancements over the years. The existing definitions within BPC § 9801 do not account for technology such as smart devices, including smart phones or smart watches, tablets, laptops, GPS devices, drones, or Bluetooth technology devices such as speakers or headphones. For example, instead of disk drives, more popular today are solid-state drives. Definitions within the HFTI program have not been updated since the 1970s. Expanding definitions with terms that are commonly used within the industry would likely increase industry’s ability to meet flammability and labeling requirements as manufacturers are required to list filling material components for consumer review, e.g. many common components used as filling materials are not currently defined such as polyurethane foam.
Recommendation and Proposed Statutory Change. The Bureau should provide the Committees with any proposals for technical statutory cleanup that may be necessary.
- Proposed Author’s Amendments:
License extension and renewal. The Author is proposing to mirror the renewal provisions for an EAR registration to those of a HFTI registration in order to provide a timeframe for which a registration remains expired and is no longer accruing delinquency fees.
Amend BPC § 9832.5 as follows:
(f) A registration that is not renewed within six years of its expiration shall be cancelled, but if the holder of the registration submits a new application and meets all of the following requirements, the registration may be reissued or reinstated:
(1) No fact, circumstance, or condition exists which would justify denial of registration under Section 480.
(2) The registrant pays all renewal, delinquency, and penalty fees that have accrued since the date on which the registration was last renewed.
(g) The bureau may impose conditions on any registration issued pursuant to subdivision (c).
Financial requirements for HHMs. In order to address the issue of BHGS not having the expertise or ability to review the financial resources of an applicant for a HHM permits, the Author is proposing the following:
Amend BPC §19239(g) as follows:
(g) The bureau shall issue a permit only to those applicants who it finds have demonstrated that they possess sufficient knowledge, ability, integrity, and financial resources and responsibility to perform the service within the scope of their application.
SUPPORT AND OPPOSITION:
Support:
None received.
Opposition:
None received.
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Discussed in Hearing
36SEC
Senate Floor
1MIN
Assembly Floor
2MIN
Assembly Standing Committee on Business and Professions
2MIN
Senate Standing Committee on Business, Professions and Economic Development
Bill Author
Bill Co-Author(s):
