BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 2073| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 2073 Author: Matthews (D) Amended: 4/5/06 in Assembly Vote: 21 SENATE BUS., PROF. & ECON. DEV. COMMITTEE : 5-0, 6/12/06 AYES: Figueroa, Aanestad, Florez, Morrow, Simitian ASSEMBLY FLOOR : 75-0, 4/20/06 - See last page for vote SUBJECT : Home improvement: exemption for fire alarm installation SOURCE : California Alarm Association DIGEST : This bill exempts the sale, installation, and servicing of a fire alarm sold in conjunction with an alarm system, if all costs associated with the fire alarm do not exceed $500, and will exempt any costs associated with monitoring a burglar or fire alarm system from the home improvement contract regulations, and requires the alarm system licensees to instead meet certain other conditions. ANALYSIS : Existing law 1.Provides for the licensing and regulation of contractors by the Contractors' State License Board (CSLB). CONTINUED AB 2073 Page 2 2.Defines a "home improvement contract" and requires home improvement contracts and service and repair contracts to comply with certain requirements and contain specified language. 3.Defines a "home solicitation contract" and requires home solicitation contracts to comply with certain requirements. Provides the purchaser of a home solicitation contract the right to cancel until midnight of the third business day. 4.Provides for the licensing and regulation of alarm company operators by the Bureau of Security and Investigative Services. 5.Requires alarm system contracts, including lease agreements, monitoring agreements, and service agreements, to comply with certain customer notification requirements relating to installation labor, services and materials. This bill: 1.Exempts from the home improvement contract requirements a fire alarm sold in conjunction with a security alarm system; provided that all costs associated with making the fire alarm system operable do not exceed $500, and provided the alarm company operator does all of the following: A. Complies with existing alarm system contract requirements. B. Complies with existing home solicitation contract requirements. C. Executes a certification statement within the contract, or separate from the contract, signed by all parties to the contract that all costs associated with making the fire alarm system operable do not exceed $500, and certifies that statement as true and accurate. Further requires the certification document or contract to include the address of the residence and the contact AB 2073 Page 3 information and license number of the contractor. D. Provides the customer with copies of all contracts and documents. E. Retains all contracts and documents for five years, and makes available to the CSLB within 30 days of written request. 2.Establishes that failure to provide the CSLB with the certification or contract within 30 days of written request creates a presumption of violation of this section, unless evidence to the contrary is presented within the time frame specified by the CSLB. 3.Exempts all costs associated with monitoring a burglar or fire alarm system from the home improvement contract requirements. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No SUPPORT : (Verified 6/13/06) California Alarm Association (source) ARGUMENTS IN SUPPORT : According to the sponsor of this bill, the California Alarm Association, this bill is needed to clarify a conflict between two competing statutes regulating the type of contracts an alarm company must use when installing an alarm system that has both a burglar and fire monitoring system. ASSEMBLY FLOOR : AYES: Aghazarian, Arambula, Baca, Benoit, Berg, Bermudez, Blakeslee, Bogh, Canciamilla, Chan, Chavez, Chu, Cogdill, Cohn, Coto, Daucher, De La Torre, DeVore, Dymally, Emmerson, Evans, Frommer, Garcia, Goldberg, Hancock, Harman, Jerome Horton, Shirley Horton, Houston, Huff, Jones, Karnette, Keene, Klehs, Koretz, La Malfa, La Suer, Laird, Leno, Leslie, Levine, Lieber, Lieu, Liu, Matthews, McCarthy, Montanez, Mountjoy, Mullin, Nakanishi, Nation, Nava, Negrete McLeod, Niello, Oropeza, Parra, Pavley, Plescia, Richman, Ridley-Thomas, Sharon Runner, Ruskin, AB 2073 Page 4 Saldana, Spitzer, Strickland, Torrico, Tran, Umberg, Vargas, Villines, Walters, Wolk, Wyland, Yee, Nunez NO VOTE RECORDED: Bass, Calderon, Haynes, Maze, Salinas JJA:do 6/13/2006 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****