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SB-1483 Department of Consumer Affairs: electronic and appliance repair, home furnishings, and thermal insulation.(2017-2018)

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Date Published: 06/12/2018 09:00 PM
SB1483:v96#DOCUMENT

Amended  IN  Assembly  June 12, 2018
Amended  IN  Senate  April 30, 2018
Amended  IN  Senate  April 17, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 1483


Introduced by Senator Hill

February 16, 2018


An act to amend Sections 9810, 9812.5, 9830.5, 9832.5, 9842, 9844, 9847.5, 9849, 9851, 9853, 9855.3, 9855.9, 9860, 9862.5, 9863, 19032, 19162, and 19163 of, and to amend, repeal, and add Section 9855 to, of, the Business and Professions Code, relating to professions and vocations.


LEGISLATIVE COUNSEL'S DIGEST


SB 1483, as amended, Hill. Department of Consumer Affairs: electronic and appliance repair, home furnishings, and thermal insulation.
(1) Existing law establishes the Bureau of Electronic and Appliance Repair, Home Furnishings, and Thermal Insulation, under the direction of a chief who is responsible to the Director of Consumer Affairs, and specifies that the powers and duties of the bureau shall be subject to review by the appropriate policy committees of the Legislature as if the provisions were scheduled to be repealed on January 1, 2019.
This bill would extend that date to January 1, 2023.
(2) Existing law authorizes the director, in accordance with the State Civil Service Act, to appoint and fix the compensation of inspectors and other personnel as may be necessary for the administration of the Home Furnishings and Thermal Insulation Act. Existing law also establishes the Division of Investigation within the Department of Consumer Affairs, comprised of investigators who have the authority of peace officers and the division is headed by the Chief of the Division of Investigation.
This bill would specify that the director, in accordance with the State Civil Service Act and the provisions establishing the Division of Investigation, is authorized to appoint and fix the compensation of such clerical, inspection, investigation, and auditing personnel as well as a deputy chief as may be necessary to carry out the Home Furnishings and Thermal Insulation Act, and would require such personnel to perform their respective duties under the supervision and the direction of the chief.
(3) The Home Furnishings and Thermal Insulation Act provides for the licensure and regulation by the Bureau of Electronic and Appliance Repair, Home Furnishings, and Thermal Insulation of persons engaged in various businesses associated with home furnishings, including custom upholsterers. The act requires a custom upholsterer to give a customer a written estimate of the price of the labor and materials necessary for a specific job. The act also requires all work to be performed by a custom upholsterer to be recorded on a work order containing specified information and requires one copy of the work order to be given to the customer before any work is performed and one copy to be retained by the custom upholsterer for at least one year.
This bill would specify that the provisions pertaining to a written estimate shall not prohibit the use of a written estimate in electronic format. The bill would require a custom upholsterer who provides a copy of a work order to a customer in electronic format to retain an electronic copy of the order for at least one year, as specified.
(4) The Electronic and Appliance Repair Dealer Registration Law provides for the licensure and regulation of service dealers, as defined, by the Bureau of Electronic and Appliance Repair, Home Furnishings, and Thermal Insulation within the Department of Consumer Affairs and makes a violation of its provisions a misdemeanor. That law requires all work done by a service dealer to be recorded on an invoice and requires one copy to be given to the customer and one copy to be retained by the service dealer for at least 3 years. That law also requires a service dealer to provide an initial written estimate for the cost of repair, as specified.
This bill would require a service dealer who provides a copy of the invoice to a customer in electronic format to retain an electronic copy for at least 3 years, as provided. The bill would specify that the provisions pertaining to a written estimate shall not prohibit the use of a written estimate in electronic format.
(5) Until January 1, 2019, the Electronic and Appliance Repair Dealer Registration Law also specifically regulates service contracts and service contractors and defines the term “service contract” to mean a written contract to perform services relating to the maintenance, replacement, or repair of certain consumer goods. That law requires a service contractor to file a copy of the contract form it issues with the director of the department prior to its use.
This bill, on and after January 1, 2020, would define the term “service contract” to apply more generally to all consumer goods, as defined, used for personal, family, or household purposes. The bill would require a service contractor to file a copy of the contract form it uses with the director no later than 30 days before use and to also file all documents incorporated by reference into a service contract per the contract form. The bill would require each service contract form filed with the director to have a unique number and last revised date. The bill would prohibit any changes to the text of a contract form unless the revised language has been submitted to the director for review. review, except as specified. The bill would also extend the operation of the service contractor provisions to January 1, 2023. Because the bill would expand the scope of a crime, it would impose a state-mandated local program.
(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.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 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 Electronic and Appliance Repair, Home Furnishings, and Thermal Insulation, 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 Electronic and Appliance Repair, Home Furnishings, and Thermal Insulation.
(e) Notwithstanding any other law, the powers and duties of the Bureau of Electronic and Appliance Repair, Home Furnishings, and Thermal Insulation, 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, 2023.

SEC. 2.

 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 his or her 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, 2023, and as of that date is repealed.

SEC. 3.

 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 him or her 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 seller’s 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 contractor’s 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 he or she had a place of business in this state.
(c) This section shall remain in effect only until January 1, 2023, and as of that date is repealed.

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.
(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) This section shall remain in effect only until January 1, 2023, and as of that date is repealed.

SEC. 5.

 Section 9842 of the Business and Professions Code is amended to read:

9842.
 All work done by a service dealer shall be recorded on an invoice in such detail as is required by regulations issued by the director and shall describe all service work done and all parts supplied. If any used parts are supplied, the invoice shall clearly state that fact. One copy shall be given to the customer and one copy shall be retained by the service dealer for a period of at least three years. If a copy of the invoice is provided to the customer in an electronic format, an electronic copy of the invoice shall be retained by the service dealer for the same retention period.

SEC. 6.

 Section 9844 of the Business and Professions Code is amended to read:

9844.
 An initial written estimate for the cost of repair shall be given to the customer before performing any repairs. The written estimate shall include all costs for parts and labor, and the service dealer may not charge for work done or parts supplied in excess of the estimate without the previous consent of the customer. The service dealer may charge a reasonable fee for services provided in determining the nature of the malfunction in preparation of a written estimate for repair. The service dealer shall advise the customer in writing of the amount of the fee prior to a repair made in the residence, before removal of the consumer goods from the customer’s residence, or upon acceptance of the goods at the repair facility or registered location. This section shall not prohibit the use of a written estimate in an electronic format.

SEC. 7.

 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, 2023, and as of that date is repealed.

SEC. 8.

 Section 9849 of the Business and Professions Code, as amended by Section 7 of Chapter 428 of the Statutes of 2014, 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, 2023, and as of that date is repealed.

SEC. 9.

 Section 9849 of the Business and Professions Code, as amended by Section 8 of Chapter 428 of the Statutes of 2014, 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, 2023.

SEC. 10.

 Section 9851 of the Business and Professions Code, as amended by Section 9 of Chapter 428 of the Statutes of 2014, 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, 2023, and as of that date is repealed.

SEC. 11.

 Section 9851 of the Business and Professions Code, as amended by Section 10 of Chapter 428 of the Statutes of 2014, 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, 2023.

SEC. 12.

 Section 9853 of the Business and Professions Code, as amended by Section 11 of Chapter 428 of the Statutes of 2014, 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 his or her 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, 2023, and as of that date is repealed.

SEC. 13.

 Section 9853 of the Business and Professions Code, as amended by Section 12 of Chapter 428 of the Statutes of 2014, 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 his or her 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 on January 1, 2023.

SEC. 14.

 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 an electronic set or appliance, as defined by this chapter, and their accessories or of furniture, jewelry, lawn and garden equipment, power tools, fitness equipment, telephone equipment, small kitchen appliances and tools, optical products, or home health care products, 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 building’s 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 “consumer goods,” “manufacturer,” “retail seller,” “retailer,” and “sale” shall have the same meanings ascribed to them in Section 1791 of the Civil Code.
(j) This section shall remain in effect only until January 1, 2020, and as of that date is repealed.

SEC. 15.

 Section 9855 is added to the Business and Professions Code, 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 building’s 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 “consumer goods,” “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.

(j)

(k) This section shall become operative on January 1, 2020.

SEC. 16.

 Section 9855.3 of the Business and Professions Code is amended to read:

9855.3.
 (a) (1) The service contract form, along with all documents incorporated by reference into a service contract per the contract form, to be issued by the service contractor shall be filed with the director by the service contractor no later than 30 days prior to its use.
(2) The term “documents incorporated by reference” shall mean all documents referred to in the contract that are expressly made a part of the contract but that are not a part of the body of the contract. These documents may include, but are not limited to, invoices, declaration pages, and sales receipts.
(3) Each service contract form shall be identified by a unique form number and date of last revision.
(4) Once a service contract form is filed with the director under paragraph (1), no further changes shall be made to the text of the contract form without resubmission of the contract form to the director. director, unless the text was indicated as variable text when the contract is initially filed with the director.
(b) Every service contract administrator shall file with its application for registration, and thereafter, with its application for registration renewal, a service contract reimbursement insurance policy.
(c) Every service contract seller shall file with his or her application for registration, and thereafter with his or her application for registration renewal, one of the following:
(1) The most recent annual report on Form 10-K required by the Securities and Exchange Commission, reflecting a net worth greater than the sum of the deferred revenues from service contracts in force. If the service contractor is a foreign corporation that files a comparable audited financial statement with its home government or with the United States government, the director may deem that statement an acceptable substitute for Form 10-K.
(2) A service contract reimbursement insurance policy.
(3) Evidence that his or her service contracts are administered by a service contract administrator who has obtained a service contract reimbursement insurance policy covering the seller’s service contracts.
(4) Evidence of a funded account held in escrow equal to a minimum of 25 percent of the deferred revenues from the service contracts in force.

SEC. 17.

 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, 2023, and as of that date is repealed.

SEC. 18.

 Section 9860 of the Business and Professions Code, as amended by Section 14 of Chapter 428 of the Statutes of 2014, 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, 2023, and as of that date is repealed.

SEC. 19.

 Section 9860 of the Business and Professions Code, as amended by Section 15 of Chapter 428 of the Statutes of 2014, 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, 2023.

SEC. 20.

 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, 2023, and as of that date is repealed.

SEC. 21.

 Section 9863 of the Business and Professions Code, as amended by Section 17 of Chapter 428 of the Statutes of 2014, 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 his or her discretion, may suggest measures that in the director’s judgment would compensate the complainant for the damages he or she has suffered as a result of the alleged violation. If the service dealer or service contractor accepts the director’s 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, 2023, and as of that date is repealed.

SEC. 22.

 Section 9863 of the Business and Professions Code, as amended by Section 18 of Chapter 428 of the Statutes of 2014, 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 his or her discretion, may suggest measures that in the director’s judgment would compensate the complainant for the damages he or she has suffered as a result of the alleged violation. If the service dealer accepts the director’s 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, 2023.

SEC. 23.

 Section 19032 of the Business and Professions Code is amended to read:

19032.
 The director, in accordance with the State Civil Service Act and Section 159.5, may appoint and fix the compensation of such clerical, inspection, investigation, and auditing personnel as well as a deputy chief, as may be necessary to carry out the provisions of this chapter. All such personnel shall perform their respective duties under the supervision and the direction of the chief.

SEC. 24.

 Section 19162 of the Business and Professions Code is amended to read:

19162.
 A custom upholsterer shall give to his or her customer a written estimate of the price of the labor and materials necessary for a specific job. No work shall be performed and no charges shall accrue before authorization to proceed is obtained from the customer, and no charge shall be made for work performed or materials supplied in excess of the estimated price without the oral or written consent of the customer obtained after it is determined that the estimated price is insufficient and before the work not estimated is performed or the materials not estimated are supplied. Nothing in this section shall be construed as requiring a custom upholsterer to give an estimate if he or she does not agree to perform the requested work. As used in this section, “materials” includes structural units, filling materials, containers, and coverings. This section shall not prohibit the use of a written estimate in an electronic format.

SEC. 25.

 Section 19163 of the Business and Professions Code is amended to read:

19163.
 All work to be performed by a custom upholsterer shall be recorded on a work order containing information required by rules and regulations adopted by the bureau and shall describe all work to be performed, all materials to be supplied, and the period within which the estimate shall remain effective. If any secondhand materials are to be supplied, the work order shall clearly identify them as secondhand. No work shall be performed and no charges shall accrue before authorization for the work and materials is obtained from the customer, and no charge shall be made for work performed or materials supplied different from those specified in the work order without the oral or written consent of the customer. One copy of the work order shall be given to the customer before any work is performed and one copy shall be retained by the custom upholsterer for at least one year. As used in this section, “materials” includes structural units, filling materials, containers, and coverings. If a copy of the work order is provided to the customer in an electronic format, an electronic copy of the work order shall be retained by the service dealer for the same retention period.

SEC. 26.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B 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 XIII B of the California Constitution.