BILL ANALYSIS AB 2111 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2111 (Smyth) As Amended August 16, 2010 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |63-0 |(May 28, 2010) |SENATE: |31-0 |(August 20, | | | | | | |2010) | ----------------------------------------------------------------- Original Committee Reference: B.,P. & C.P. SUMMARY : Expands the number of parties who may sell service contracts, requires a service contract reimbursement insurance policy (SCRIP) for all service contracts (SC), permits electronic sets, appliances and their accessories to be covered by SCs, excludes contracts for structural wiring associated with the delivery of cable, telephone, or broadband services from the definition of SC, exempts certain financial institutions and specified electrical device manufacturer or contractors from the definition of "service contract seller," and makes changes to SC provisions, as specified. The Senate amendments : 1)Exclude from the definition of SC a contract in writing to maintain structural wiring associated with the delivery of cable, telephone, or other broadband communications services. 2)Exclude the following from the terms "SC seller" or "seller:" a) A bank or bank holding company, or the subsidiary or affiliate of either, or a financial institution, licensed under state or federal law, selling or offering to sell a SC unless that entity is financially and legally obligated under the terms of a SC; and, b) An electrical device manufacturer or electrical contractor who constructs, installs, or services units of an electrical system intended to carry electrical energy as part of a building's electrical system, including raceways, conductors, invertors, conduit, wires, switches or other similar devices. 3)Clarifies that, unless provided for otherwise, refunds shall AB 2111 Page 2 be made at the seller's option as indicated in the contract, or for a vehicle service contract, at the guarantor's option as determined at the time of cancellation, as specified. 4)Make technical and clarifying changes. EXISTING LAW: 1)Makes it unlawful for any person to act as a service contract administrator (SCA) or a SC seller without first registering with the Bureau under the Electronic and Appliance Repair Dealer Registration Law. 2)Prohibits a SCA, as defined, from being an obligor, as defined, on a SC and existing law requires these SCAs to maintain a SCRIP, as defined. 3)Defines a SC seller as a person who sells or offers to sell a SC to a SC holder, including a person who is the obligor under a SC sold by the seller, manufacturer, or repairer of the product covered by the SC. AS PASSED BY THE ASSEMBLY , this bill was substantially similar to the version approved by the Senate. FISCAL EFFECT : According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs. Analysis Prepared by : Sarah Weaver / B.,P. & C.P. / (916) 319-3301 FN: 0006192