BILL NUMBER: AB 910	AMENDED	07/29/95
	BILL TEXT

	AMENDED IN SENATE   JULY 29, 1995
	AMENDED IN SENATE   JULY 28, 1995

INTRODUCED BY  Assembly Member Speier

                        FEBRUARY 22, 1995

   An act to amend Sections 125.9, 8514, and 8516 of, to add Sections
102.1, 102.2, 8514.5, and 8519.5 to, and to add and repeal Section
117 of, the Business and Professions Code, relating to consumer
affairs, {- and -} making an appropriation therefor {+ , and
declaring the urgency thereof, to take effect immediately +} .


	LEGISLATIVE COUNSEL'S DIGEST


   AB 910, as amended, Speier.  Department of Consumer Affairs:
Cemetery Board:  Funeral Directors and Embalmers Board:  Structural
Pest Control Board.
   The Funeral Directors and Embalmers Law provides for the licensure
and regulation of funeral directors and embalmers by the State Board
of Funeral Directors and Embalmers.  The Cemetery Act provides for
the regulation of cemeteries by the Cemetery Board.
   This bill would provide that if the Cemetery Board and the Funeral
Directors and Embalmers Board are not consolidated or otherwise
restructured, as specified, the Department of Consumer Affairs shall
succeed to and is vested with all the duties, powers, purpose,
responsibilities, and jurisdiction of the boards, as provided, and
that the Controller is authorized to transfer the necessary amount of
funds from the 1995 Budget Act to the department for expenditure for
the purposes of the bill, as provided.  This bill would be operative
only as provided.
   Existing law provides for the Structural Pest Control Board to
perform specified functions.
   This bill would provide that if specified contingencies do not
occur by January 1, 1996, the Department of Consumer Affairs shall
succeed to and shall be vested with all the duties, powers, purpose,
responsibilities, and jurisdiction of the board, and would
appropriate specified amounts to the department in connection
therewith, as provided.
   Under existing law, the Director of the Department of Consumer
Affairs has various powers and duties, as specified.
   This bill would confer, notwithstanding other provisions of law,
specific powers on the director relative to budgeting, including the
ability to classify, establish, and revise departmental specific
established classifications, as specified, and execute contracts,
procure goods and services, and negotiate leases, as specified.  {-
This bill would authorize a pilot program related to prequalifying
minority, women, and disabled veteran-owned small business
enterprises and prepaying these vendors, as specified.  This bill
would also make specified statements relative to affirmative action.
-}  These provisions would be repealed as of July 1, 1996.
   Existing law authorizes various boards in the Department of
Consumer Affairs to provide for a system of citation for violations,
but this general provision does not apply to a board where it has
specific statutory authority.
   This bill would delete the above exception, thus making those
boards all subject to the uniform citation system.
   Existing law authorizes a registered pest control company to
subcontract work.
   This bill would require the consumer to be informed of and consent
to the subcontracting, and would permit the consumer to select
another company.
   This bill would also provide that it is unlawful for a registered
company, when billing for subcontracted work, to charge, bill, or
otherwise solicit payment from the consumer for structural pest
control work not actually rendered by the registered company or under
its direct supervision without providing specified information in
writing.
   Under existing law a registered pest control company or licensee
may not commence work, or sign, issue, or deliver any documents
expressing an opinion or statement until an inspection has been made
by a licensed Branch 3 field representative or operator.  Following
an inspection, a report is required to be delivered to the person
requesting the inspection, or to the person's designated agent,
before work is commenced, setting forth specified information.
   This bill would add to the information required to be included in
the report, a statement, printed in bold type, providing notice to
the consumer, as specified.
   This bill would also require a certificate to be issued by the
company that performs a fumigation, as specified.  {+
   This bill would declare that it is to take effect immediately as
an urgency statute. +}
   Vote: {- majority -} {+ 2/3 +} .  Appropriation:  yes.  Fiscal
committee: yes.  State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 102.1 is added to the Business and Professions
Code, to read:
   102.1.  (a) If the Cemetery Board and the Funeral Directors and
Embalmers Board are not consolidated or otherwise restructured on
January 1, 1996, the Department of Consumer Affairs shall succeed to,
and is vested with, all the duties, powers, purpose,
responsibilities, and jurisdiction of the boards, including the
employment of one executive director for the purposes of performing
the department's obligations herewithin.
   (b) Notwithstanding Section 107, any law authorizing the
appointment of an executive officer by the Cemetery Board and the
Funeral Directors and Embalmers Board shall not be implemented and
shall have no force or effect while either board is inoperative or
repealed.
   (c) If legislation consolidating or otherwise restructuring the
Cemetery Board and the Funeral Directors and Embalmers Board is not
enacted, the Controller is authorized to transfer the necessary
amount of funds from Item 1335-001-0258 of the 1995 Budget Act to the
department for expenditure by the department for purposes of this
section.
   (d) This section shall be operative only during the period that
legislation is not enacted to consolidate or otherwise restructure
the Cemetery Board and the Funeral Directors and Embalmers Board into
another board or entity.
  SEC. 2.  Section 102.2 is added to the Business and Professions
Code, to read:
   102.2.  (a) If the Structural Pest Control Board does not comply
with the contingencies specified in paragraphs (a) to (d), inclusive,
of Provision 1 of Item 1530-001-0775 of the Budget Act of 1995 by
January 1, 1996, as determined by the Department of Consumer Affairs,
then the department may succeed to and is vested with all the
duties, powers, purpose, responsibilities, and jurisdiction of the
board, including the employment of one executive director for the
purposes of performing the department obligations herein.
   (b) If the department elects to not exercise control over the
board pursuant to subdivision (a), the department shall monitor the
board on a monthly basis and the Controller shall, on a monthly
basis, transfer the necessary amount of funds, not to exceed
one-sixth of the amount of the appropriation for each fund identified
in subdivision (c), to the board for the purpose of this
subdivision.  If at any time the department determines that the board
is not meeting satisfactory progress toward the obligations set
forth in subdivision (a), the department may invoke privileges of
succession as allowed by subdivision (a).
   Monitoring shall include a monthly report from the board, the
status of meeting the obligations set forth in subdivisions (a)
through (d), inclusive, of Provision 1 of Item 1530-001-0775 of the
Budget Act of 1995 in addition to other statutory obligations as
prescribed by law.
   (c) Notwithstanding Section 107, any provision of law authorizing
the appointment of an executive officer by the Structural Pest
Control Board shall not be implemented and shall have no force or
effect while the board is inoperative or repealed.  This subdivision
shall be in effect only if the Department of Consumer Affairs invokes
privileges of succession pursuant to subdivision (a).
   (d) In the event that the Structural Pest Control Board does not
comply with Provision 1 of Item 1530-001-0775 of the Budget Act of
1995 by January 1, 1996, as determined by the department, the sum of
one million three hundred fifty-five thousand dollars ($1,355,000) is
thereupon appropriated from the Structural Pest Control Fund to the
department, and the sum of one hundred three thousand dollars
($103,000) is thereupon appropriated from the Structural Pest Control
Education and Enforcement Fund to the department, for purposes of
this section.
  SEC. 3.  Section 117 is added to the Business and Professions Code,
to read:
   117.  (a) This section shall remain in effect only until July 1,
1996, and as of that date is repealed.
   (b) The budget contract authorized by this section provides the
Department of Consumer Affairs with various operational flexibility
to improve its performance.  The Legislature, in recognition of the
goal of performance funding, which is to focus departmental effort on
the achievement of outcome measures rather than non-value-added
administrative processes, grants specific powers to the director to
pilot alternatives to existing administrative processes and implement
employee, department incentive, and savings programs.
   (c) Notwithstanding the provisions of Sections 18800 to 18807,
inclusive, Sections 19818 to 19818.21, inclusive, and Sections 19889
to 19889.4, inclusive, of the Government Code, the director:
   (1) Shall have full authority and discretion to classify positions
in departmental specific established classifications, apply
established allocations standards, and prepare and submit calendar
items to the State Personnel Board to propose establishment of, or
revision to, departmental specific classification specifications.  In
addition, the Department of Personnel Administration shall provide
an expedited review of 10 working days for all reclassification
requests for servicewide classifications submitted by the Department
of Consumer Affairs.
   (2) In conjunction with the Director of the Department of
Personnel Administration, is authorized to create a proposal for
legislative review and approval that establishes a gain-sharing
program.  The gain-sharing plan shall authorize the reinvestment of
50 percent of the department's savings back into the programs and
bureaus, and shall outline the planned expenditures.
   (3) In conjunction with the Director of the Department of
Personnel Administration, is authorized to establish a pilot
classification and pay system that is based upon wide or
broad-banding concepts.
   (d) The provisions of subdivision (c) shall apply only to civil
service classifications and positions within the director's
appointing authority.  The director shall ensure that the authority
and discretion authorized by these sections are consistent with the
merit principles as embodied in Article VII of the California
Constitution and Section 18500 of the Government Code, and is in
conformance with the requirements of the Ralph C. Dills Act (Chapter
10.3 (commencing with Section 3512) of Division 4 of Title 1 of the
Government Code).  Nothing in subdivision (c) shall be construed to
authorize the Department of Consumer Affairs to administratively
establish positions.
   (e) Notwithstanding any other provision of law, the Department of
Consumer Affairs may, with the agreement of the State Personnel
Board, waive specific statutes within Division 5 (commencing with
Section 18000) of Part 2 of Title 2 of the Government Code, except
that nothing in this section shall infringe upon or conflict with the
merit principles embodied in the California Constitution, nor shall
this waiver include any of the provisions contained in Chapter 10
(commencing with Section 19680) of Division 5 of Part 2 of Title 2 of
the Government Code.  The department will design pilot alternative
competitive examination, appointment, and discipline processes to:
   (1) Enhance the availability of candidates with specific knowledge
and abilities.
   (2) Expedite the hiring process.
   (3) Expand the diversity of the department's work force.
   (4) Expedite and streamline the discipline process.
   (f) Notwithstanding Sections 2050 to 2057, inclusive, Sections
10115 to 10115.13, inclusive, Sections 10290 to 10382, inclusive, and
Sections 12100.5 to 12121, inclusive, of the Public Contract Code,
and Section 14669 and Sections 14740 to 14880, inclusive, of the
Government Code, the director, or his or her designee, in lieu of the
Director of General Services, shall have full authority and
discretion to execute all contracts, procure all goods and services,
negotiate lease agreements for office, warehouse, and other
appropriate facilities, and determine appropriate methods to store
and retrieve departmental records related to the bureaus, programs,
and divisions under the director's appointing authority.
   Except as provided in this subdivision, the director shall use the
authority granted in this subdivision to implement alternative
approaches, procedures, and methods, in lieu of the guidelines and
procedures contained in the State Administrative Manual and in other
state-issued guidelines, to carry out the provisions of the sections
of the Public Contract Code and the Government Code cited in this
section.
   This authority granted by this subdivision shall not affect any of
the following:
   (1) The department's continued use of the state's private line
voice network (CALNET).
   (2) The Department of General Services' continued responsibility
and authority for the consolidation of the department's offices in
the Sacramento area.
   (3) The requirement that the department obtain the written
approval of the Secretary of the State and Consumer Services Agency
for any leasing of offices that may affect the Los Angeles Basin and
San Francisco Area Consolidation Plans.
   All reports to the Legislature required in the sections cited in
this section shall be made by the director in the same form and
manner as currently reported by the Department of General Services.
   (g) Notwithstanding Sections 12100 to 12121, inclusive, of the
Public Contract Code, the director, or his or her designee, shall
have full authority and discretion for the procurement of electronic
data processing and telecommunications goods and services related to
the bureaus, programs, and divisions under the director's appointing
authority, that do not exceed one million dollars ($1,000,000) per
procurement.
   (h) Notwithstanding Sections 14850 to 14855, inclusive, of the
Government Code, the director, or his or her designee, shall have
full authority and discretion to execute contracts and procure
printing services, or both, that are timely and cost-beneficial to
the bureaus, programs, and divisions under the director's appointing
authority.
   (i) Notwithstanding Section 2807 of the Penal Code, the director,
or his or her designee, shall have full authority to procure goods
and services from the private sector, even though these goods and
services may be available through the Prison Industries Authority,
when in his or her discretion it is more cost-beneficial to the
bureaus, programs, and divisions under the director's appointing
authority.  {-
   (j) Notwithstanding any other provision of law, the director, in
conjunction with the Director of General Services, may establish a
pilot program to explore the feasibility of prequalifying minority,
women, and disabled veteran-owned small business enterprises, and
prepayments to vendors when it is cost-beneficial to the department.
The department shall report semiannually to the Joint Legislative
Budget Committee and other appropriate fiscal committees of the
Legislature on the prequalification and prepayment pilot project.
The department, at a minimum, shall report any efficiencies
experienced, and any losses incurred due to the prepayment of
vendors.
   (k) The department's affirmative action program is designed to
ensure the maintenance of a fair personnel system that provides equal
opportunities for all people to compete at all levels of its work
force, regardless of race, color, national origin, religion, sex,
sexual orientation, marital status, age, or disability.  "Affirmative
action" means a set of specific, results-oriented procedures that
may include, but are not limited to, recruitment, hiring,
appointment, work assignment, promotion, treatment during employment,
pay, selection for training, discipline, or termination.  The
affirmative action program is also designed to achieve a civil
service work force that is fully representative of the state's labor
force.
   (l) -} {+
   (j) +} All reports to the Legislature required in the sections
cited in this section shall be made by the director in the same form
and manner as currently reported by the otherwise appropriate agency.

  SEC. 4.  Section 125.9 of the Business and Professions Code is
amended to read:
   125.9.  (a) Except with respect to persons regulated under Chapter
8 (commencing with Section 6850), Chapter 11 (commencing with
Section 7500), Chapter 11.5 (commencing with Section 7512), and
Chapter 11.6 (commencing with Section 7590) of Division 3, or a
person holding a license specified in paragraph (1), (6), or (7) of
subdivision (b) of Section 9941, any board, bureau, or commission
within the department may establish, by regulation, a system for the
issuance to a licensee of a citation which may contain an order of
abatement or an order to pay an administrative fine assessed by the
board, bureau, or commission where the licensee is in violation of
the applicable licensing act or any regulation adopted pursuant
thereto.
   (b) The system shall contain the following provisions:
   (1) Citations shall be in writing and shall describe with
particularity the nature of the violation, including specific
reference to the provision of law determined to have been violated.
   (2) Where appropriate, the citation shall contain an order of
abatement fixing a reasonable time for abatement of the violation.
   (3) In no event shall the administrative fine assessed by the
board, bureau, or commission exceed two thousand five hundred dollars
($2,500) for each inspection or each investigation made with respect
to the violation.  In assessing a fine, the board, bureau, or
commission shall give due consideration to the appropriateness of the
amount of the fine with respect to such factors as the gravity of
the violation, the good faith of the licensee, and the history of
previous violations.
   (4) A citation or fine assessment issued pursuant to a citation
shall inform the licensee that if he or she desires a hearing to
contest the finding of a violation, that hearing shall be requested
by written notice to the board, bureau, or commission within 30 days
of the date of issuance of the citation or assessment.  If a hearing
is not requested pursuant to this section, payment of any fine shall
not constitute an admission of the violation charged.  Hearings shall
be held pursuant to Chapter 5 (commencing with Section 11500) of
Part 1 of Division 3 of Title 2 of the Government Code.
   (5) Failure of a licensee to pay a fine within 30 days of the date
of assessment, unless the citation is being appealed, may result in
disciplinary action being taken by the board, bureau, or commission.
Where a citation is not contested and a fine is not paid, the full
amount of the assessed fine shall be added to the fee for renewal of
the license.  A license shall not be renewed without payment of the
renewal fee and fine.
   (c) The system may contain the following provisions:
   (1) A citation may be issued without the assessment of an
administrative fine.
   (2) Assessment of administrative fines may be limited to only
particular violations of the applicable licensing act.
   (d) Notwithstanding any other provision of law, where a fine is
paid to satisfy an assessment based on the finding of a violation,
payment of the fine shall be represented as satisfactory resolution
of the matter for purposes of public disclosure.
   (e) Administrative fines collected pursuant to this section shall
be deposited in the special fund of the particular board, bureau, or
commission.
  SEC. 5.  Section 8514 of the Business and Professions Code is
amended to read:
   8514.  No registered company shall commence work on a contract, or
sign, issue, or deliver any documents expressing an opinion or
statement relating to the control of household pests, or
wood-destroying pests or organisms until an inspection has been made.

   Notwithstanding any provision of this chapter, after an inspection
has been made a registered company which holds a branch registration
for the control of household pests, or wood destroying pests or
organisms, but its branch registration restricts the method of
eradication or control permitted, may recommend and enter into a
contract for the eradication or control of pests within the scope of
its branch registration, provided it subcontracts in writing the
actual performance of the work to a registered company which holds a
branch registration authorizing the particular method to be used.
   Upon written consent of the consumer, a registered company may in
writing subcontract any pest control work for which it is registered
in any branch or branches to a registered company holding a valid
branch registration to do such work.  The consumer must be informed
in advance, in writing, of any proposed work which the registered
company intends to subcontract and of the consumer's right to select
another person or entity of the consumer's choosing to perform the
work.  The consumer may dictate acceptance of the proposed
subcontractor or may select an appropriate person or entity of the
consumer's choosing.  Nothing in this paragraph shall be construed to
eliminate any otherwise applicable licensure requirements.
   Nothing herein contained shall permit or authorize any registered
company to perform, attempt to perform, advertise or hold out to the
public or to any person that it is authorized, qualified or
registered to perform, pest control work in any branch, or by any
method, for which it is not registered.
   Subcontracting of work, as permitted herein, shall not relieve the
prime contractor or the subcontractor from responsibility for, or
from disciplinary action because of, any act or omission on its part,
which would otherwise be a ground for disciplinary action.
  SEC. 6.  Section 8514.5 is added to the Business and Professions
Code, to read:
   8514.5.  It is unlawful for any registered company under this
chapter when billing for any subcontracted work authorized under
Section 8514, to charge, bill, or otherwise solicit payment from the
consumer for any structural pest control work not actually rendered
by the registered company or under its direct supervision unless the
consumer, prior to authorizing the performance of such work, is
provided in writing with the following information:
   (a) The name, address, and telephone number of the person or
entity who will be performing the subcontracted work.
   (b) The following statement:
   "NOTICE:  The charge for service that this company subcontracts to
another person or entity may include the company's charges for
arranging and administering such services that are in addition to the
direct costs associated with paying the subcontractor."
  SEC. 7.  Section 8516 of the Business and Professions Code is
amended to read:
   8516.  (a) This section, and Section 8519, apply only to wood
destroying pests or organisms, but do not apply to work conducted
pursuant to Section 8516.1.
   (b) No registered company or licensee shall commence work on a
contract, or sign, issue, or deliver any documents expressing an
opinion or statement relating to the absence or presence of wood
destroying pests or organisms until an inspection has been made by a
licensed Branch 3 field representative or operator.  The registered
company shall retain for three years all field reports from which a
verbal or written estimate of or solutions for work are made.  A
written inspection report conforming to this section and on a form
prescribed by the board shall be prepared and delivered to the person
requesting the inspection or to the person's designated agent.  A
copy of each report shall be filed with the board at the time the
report is delivered or not later than 10 working days after the date
the inspection is commenced, except an inspection report prepared for
use by an attorney for litigation is not required to be filed with
the board.  The report shall be delivered to the person requesting
the inspection, or to the person's designated agent, before work is
commenced.  The following shall be set forth in the report:
   (1) The date of the inspection and the name of the licensee making
the inspection.
   (2) The name and address of the person or firm ordering the
report.
   (3) The name and address of any person who is a party in interest.

   (4) The address or location of the property.
   (5) A general description of the building or premises inspected.
   (6) A foundation diagram or sketch of the structure or structures
or portions of the structure or structures inspected, indicating
thereon the approximate location of any infested or infected areas
evident, and the parts of the structure where conditions which would
ordinarily subject those parts to attack by wood destroying pests or
organisms exist.
   (7) Information regarding the substructure, foundation walls and
footings, porches, patios and steps, air vents, abutments, attic
spaces, roof framing that includes the eaves, rafters, fascias,
exposed timbers, exposed sheathing, ceiling joists, and attic walls,
or other parts subject to attack by wood destroying pests or
organisms.  Conditions usually deemed likely to lead to infestation
or infection, such as earth wood contacts, excessive cellulose
debris, faulty grade levels, excessive moisture conditions, evidence
of roof leaks, and insufficient ventilation are to be reported.
   (8) One of the following statements, as appropriate, printed in
bold type:
   (A) The exterior surface of the roof was not inspected.  If you
want the water tightness of the roof determined, you should contact a
roofing contractor who is licensed by the Contractors' State License
Board.
   (B) The exterior surface of the roof was inspected to determine
whether or not wood destroying pests or organisms are present.
   (9) Indication or description of any areas that are inaccessible
or not inspected with recommendation for further inspection if
practicable.  If, after the report has been made in compliance with
this section, authority is given later to open inaccessible areas, a
supplemental report on conditions in these areas shall be made.
   (10) Recommendations for corrective measures.
   (11) Information regarding the pesticide or pesticides to be used
for their control as set forth in subdivision (a) of Section 8538.
   (12) The inspection report shall clearly disclose that if
requested by the person ordering the original report, a reinspection
of the structure will be performed if an estimate or bid for making
repairs was given with the original inspection report, or thereafter.

   (13) The inspection report shall contain the following statement,
printed in boldface type:
   "NOTICE:  The Structural Pest Control Board encourages competitive
business practices among registered companies.  Reports on this
structure prepared by various registered companies should list the
same findings (i.e.  termite infestations, termite damage, fungus
damage, etc.).  However, recommendations to correct these findings
may vary from company to company.  Therefore, you may wish to seek a
second opinion since there may be alternative methods of correcting
the findings listed on this report that may be less costly."
   An estimate or bid for repairs shall be given separately
allocating the costs to perform each and every recommendation for
corrective measures as specified in subdivision (c) with the original
inspection report if the person who ordered the original inspection
report so requests, and if the registered company is regularly in the
business of performing corrective measures.
   If no estimate or bid was given with the original inspection
report, or thereafter, then the registered company shall not be
required to perform a reinspection.
   A reinspection shall be an inspection of those items previously
listed on an original report to determine if the recommendations have
been completed.  Each reinspection shall be reported on an original
inspection report form and shall be labeled "Reinspection" in capital
letters by rubber stamp or typewritten.  Each reinspection shall
also identify the original report by date and stamp numbers.
   After four months from an original inspection, all inspections
shall be original inspections and not reinspections.
   Any reinspection shall be performed for not more than the price of
the registered company's original inspection price and shall be
completed within 10 working days after a reinspection has been
ordered.
   (c) At the time a report is ordered, the registered company or
licensee shall inform the person or entity ordering the report, that
a separated report is available pursuant to this subdivision.  If a
separated report is requested at the time the inspection report is
ordered, the registered company or licensee shall separately identify
on the report each recommendation for corrective measures as
follows:
   (1) The infestation or infection that is evident.
   (2) The conditions that are present that are deemed likely to lead
to infestation or infection.
   If a registered company or licensee fails to inform as required by
this subdivision and a dispute arises, or if any other dispute
arises as to whether this subdivision has been complied with, a
separated report shall be provided within 24 hours of the request
but, in no event, later than the next business day, and at no
additional cost.
   (d) When a corrective condition is identified, either as paragraph
(1) or (2) of subdivision (c), and the responsible party, as
negotiated between the buyer and the seller, chooses not to correct
those conditions, the registered company or licensee shall not be
liable for damages resulting from a failure to correct those
conditions or subject to any disciplinary action by the board.
Nothing in this subdivision, however, shall relieve a registered
company or a licensee of any liability resulting from negligence,
fraud, dishonest dealing, other violations pursuant to this chapter,
or contractual obligations between the registered company or licensee
and the responsible parties.
   (e) The inspection report form prescribed by the board shall
separately identify the infestation or infection that is evident and
the conditions that are present that are deemed likely to lead to
infestation or infection.  If a separated form is requested, the form
shall explain the infestation or infection that is evident and the
conditions that are present that are deemed likely to lead to
infestation or infection and the difference between those conditions.
  In no event, however, shall conditions deemed likely to lead to
infestation                                                  or
infection be characterized as actual "defects" or as actual "active"
infestations or infections or in need of correction as a precondition
to issuing a certification pursuant to Section 8519.
   (f) The report and any contract entered into shall also state
specifically when any guarantee for the work is made, and if so, the
specific terms of the guarantee and the period of time for which the
guarantee shall be in effect.
   (g) Control service is defined as the regular reinspection of a
property after a report has been made in compliance with this section
and such corrections as have been agreed upon have been completed.
Under a control service agreement a registered company shall refer to
the original report and contract in a manner as to identify them
clearly, and the report shall be assumed to be a true report of
conditions as originally issued, except it may be modified after a
control service inspection.  A registered company is not required to
issue a report as outlined in paragraphs (1) to (9), inclusive, of
subdivision (b) after each control service inspection.  If after
control service inspection, no modification of the original report is
made in writing, then it will be assumed that conditions are as
originally reported.  A control service contract shall state
specifically the particular wood destroying pests or organisms and
the portions of the buildings or structures covered by the contract.

   (h) A registered company or licensee may enter into and maintain a
control service agreement provided the following requirements are
met:
   (1) The control service agreement shall be in writing, signed by
both parties, and shall specifically include the following:
   (A) The wood destroying pests and organisms that could infest and
infect the structure.
   (B) The wood destroying pests and organisms covered by the control
service agreement.  Any wood destroying pest or organism that is not
covered must be specifically listed.
   (C) The type and manner of treatment to be used to correct the
infestations or infections.
   (D) The structures or buildings, or portions thereof, covered by
the agreement, including a statement specifying whether the coverage
for purposes of periodic inspections is limited or full.  Any
exclusions from those described in the original report must be
specifically listed.
   (E) A reference to the original inspection report and agreement.
   (F) The frequency of the inspections to be provided, the fee to be
charged for each renewal, and the duration of the agreement.
   (G) Whether the fee includes structural repairs.
   (H) If the services provided are guaranteed, and, if so, the terms
of the guarantee.
   (I) A statement that all corrections of infestations or infections
covered by the control service agreement shall be completed within
six months of discovery, unless otherwise agreed to in writing by
both parties.
   (2) Inspections made pursuant to a control service agreement shall
be conducted by a Branch 3 licensee.  Section 8506.1 does not modify
this provision.
   (3) A full inspection of the property covered by the control
service agreement shall be conducted and a report filed pursuant to
subdivision (b) at least once every three years from the date that
the agreement was entered into, unless the consumer cancels the
contract within three years from the date the agreement was entered
into.
   (4) A written report shall be required for the correction of any
infestation or infection unless all of the following conditions are
met:
   (A) The infestation or infection has been previously reported.
   (B) The infestation or infection is covered by the control service
agreement.
   (C) There is no additional charge for correcting the infestation
or infection.
   (D) Correction of the infestation or infection takes place within
45 days of its discovery.
   (E) Correction of the infestation or infection does not include
fumigation.
   (5) All notice requirements pursuant to Section 8538 shall apply
to all pesticide treatments conducted under control service
agreements.
   (6) For purposes of this section, "control service agreement"
means any agreement, including extended warranties, to have a
licensee conduct over a period of time regular inspections and other
activities related to the control or eradication of wood destroying
pests and organisms.
   (i) All work recommended by a registered company, where an
estimate or bid for making repairs was given with the original
inspection report, or thereafter, shall be recorded on this report or
a separate work agreement and shall specify a price for each
recommendation.  This information shall be provided to the person
requesting the inspection, and shall be retained by the registered
company with the inspection report copy for three years.
  SEC. 8.  Section 8519.5 is added to the Business and Professions
Code, to read:
   8519.5.  After an inspection report has been prepared by a Branch
3 registered company pursuant to Section 8516, which discloses a
wood-destroying pest that can be eradicated by fumigation, and the
fumigation has been duly performed by a Branch 1 registered company,
the Branch 1 registered company, on company letterhead or a form that
otherwise identifies the licensee performing the fumigation and the
name and address of the registered company, shall issue the following
certification:  "This is to certify that the property located at
____ (address) was fumigated on ____ (date) for the extermination of
____ (target pest)."  This certification shall be issued to the
person ordering the fumigation and to the registered company that
prepared the inspection report.  A copy of the certification shall
accompany any reinspection report, notice of work completed prepared
pursuant to Section 8518, or any certification issued by the Branch 3
company.  {+
  SEC. 9.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to make statutory changes to implement the Budget Act of
1995 at the earliest possible time, it is necessary that this act
take effect immediately. +}