BILL ANALYSIS                                                                                                                                                                                                   
                                                                     AB 57X


                     CONCURRENCE IN SENATE AMENDMENTS

          AB 57X (Archie-Hudson) - As Amended:  August 19, 1994

ASSEMBLY VOTE 46-25 ( June 13, 1994 ) SENATE VOTE 22-12 ( August 23, 1994 
š)  

Original Committee Reference:  PUB. S. 

DIGEST

Under current law:

  1) The content and effect of home solicitation contracts, as defined, is 
     regulated.  Services includes among other things, services furnished 
     in connection with the repair, alteration or improvement of 
     residential premises. 

  2)  It is a misdemeanor to willfully make or publish any false statement, 
      spread any false rumor or employ any other false or fraudulent means 
     or device with intent to affect the market price of any kind of 
     property. 

As passed by the Assembly, this bill:

  1)  Made it a misdemeanor to sell or offer to sell consumer food items, 
      consumer good, as defined, goods used for emergency cleanup, 
     emergency or medical supplies, home heating oil or gasoline or other 
     motor fuels for a price that exceeds by more than 10% the price 
     charged by that person for those goods or services immediately prior 
     to a proclamation, as defined, unless that person proves specified 
     conditions.

  2)  Made it a misdemeanor to sell or offer to sell any repair or 
      reconstruction services or any services used in emergency cleanup for 
     a price that exceeds by more than 10% the price charged by that person 
     immediately prior to a proclamation, as defined, unless that person 
     proves specified conditions.

  3)  Provided the above offenses are punishable by up to one year in the 
     county jail and/or a fine up to $10,000.

  4)  Allowed a local legislative body or the California Legislature to 
     extend the provisions of this bill for additional 30 day periods if 
     deemed necessary.

  5)  Revised the definition of services to also include services furnished 
     in connection with the "restoration" of residential premises.

  6) Provided that any home solicitation contract for the repair or 
     restoration of a residence signed by the homeowner within seven days 
     after the home is damaged by disaster is void, unless contact is first 
     initiated by the homeowner at the seller's appropriate place of 

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     business.

  7)  Provided a contract shall not be void if solicited by the buyer or 
     agent and that buyer solicitation includes a telephone call to the 
     appropriate trade premises of the seller.

  8)  Provided that in addition to any other right to revoke an offer, a 
     buyer has the right, within a seven business days, to cancel a home 
     solicitation contract or offer for the repair or restoration of 
     residential premises damaged by a disaster that was not otherwise void.

  9) Specified that the above provision shall not apply to a contract that 
     is initiated by the buyer or his or her agent, and that is executed in 
     connection with the making of prescribed emergency or immediate 
     necessity repairs or services, among other conditions. 

10)  Contained legislative findings, as specified.

The Senate amendments:

1)  Provide these contracts shall contain a statement describing the 
š    buyer's right to cancel, as specified.

2)  Join this bill to ABX1 36 (Katz) and make the new misdemeanor created 
š    by ABX1 57 (Archie-Hudson) and ABX1 36 (Katz) read identical.

3)  Include "building materials" within the scope of the new price gouging 
š     offense and define the term.

4)  Add "insurance representative" to two provisions relating to the 
š    validity of a home solicitation contract that is initiated by the buyer 
    or his or her agent.

FISCAL EFFECT

According to the Assembly Ways and Means Committee analysis, minor costs to 
šlocal correction agencies for arrest, prosecution and incarceration.  Costs 
šare not reimbursable; by expanding the definition of crime, this bill 
šimposes a state-mandated local program. 

COMMENTS

None





                                                                     FN 012178







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