I was able to get this semi fixed on my HP 840 G2. I downloaded dconf editor and changed the setting there. It isn't a full fix. While it defaults it on a reboot to off, if the laptop locks and I unlock, its back on. I have got into the custom of shutting down after use so this pretty much solves it for me. Hoping to get some time to look into the issue with the locking/unlocking later in the week.
haven't looked into whether or not this kills power but it does allow control via the desktop indicator.
I installed dconf editor through terminal, the "how to" I followed mentioned that it can be done through the app store as well but i didn't verify this.
to install:
$ sudo apt-get install dconf-editor
Here is the link to the answer this was derived from.
elementaryos.stackexchange.com/questions/14587/…
Last, the path listed in the how to didn't follow the same for me. I had to go:
io/elementary/desktop/wingpanel/bluetooth
Once there I was able to set the default setting to off. as stated before it works with reboots, but not for timeout/lock.