BILL ANALYSIS Ó
AB 480
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Date of Hearing: April 17, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 480 (Ian Calderon) - As Amended: March 21, 2013
Policy Committee: Business and
Professions Vote: 13 - 0
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill adds a written contract for the performance of
services related to the maintenance, replacement, or repair of
optical products (i.e. prescription and nonprescription
eyeglasses), with the exception of contact lenses, to the
definition of service contract, thereby subjecting the
administrators and sellers of those contracts to the Electronic
Appliance Repair Dealer Registration Law (EARDRL) and requiring
them to register with the Bureau of Electronic and Appliance
Repair (BEAR), Home Furnishings, and Thermal Insulation.
FISCAL EFFECT
BEAR currently has approximately 19,000 licensees. It is
estimated this legislation could add over 7,600 additional
licensees. On-going costs associated with those additional
licenses would be approximately $200,000 per year (Electronic
and Appliance Repair Fund), which would be fully offset by fees.
COMMENTS
1)Purpose . This bill would expand the definition of what
constitutes a service contract in order to bring all optical
products (e.g. eyeglasses and contact lenses) service
contracts under the jurisdiction of BEAR. Supporters of the
bill, NEWAsurion, note that expanding the definition would
allow consumers to purchase service contracts as a means of
protecting their investment in eyewear. They also assert that
every other state allows the sale of service contracts for
insuring eyewear.
AB 480
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2)Background . Current law defines a service contract as a
contract in writing to perform, over a fixed period of time or
for a specified duration, services relating to the
maintenance, replacement, or repair of an electronic set or
appliance, and their accessories, furniture, jewelry, lawn and
garden equipment, power tools, fitness equipment, telephone
equipment, small kitchen appliances and tools, and or home
health care products.
BEAR regulates service contractors who sell service contracts
for the repair of consumer electronics and appliances in
California. BEAR can fine violators or revoke or suspend their
registration. EARDRL further protects consumers by requiring
that service contractors provide the service guaranteed in the
service contract.
3)Related Legislation . This bill is substantially similar to AB
1926 (Solorio) in 2012. That bill was held on the Senate
Appropriations Committee Suspense File.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081