BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 2073|
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                                 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).

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           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  







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               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,  







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          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

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