BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1326
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          SENATE THIRD READING
          SB 1326 (Roth)
          As Amended  June 18, 2014
          Majority vote 

           SENATE VOTE  :37-0  
           
           BUSINESS & PROFESSIONS             12-0                         
           
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          |Ayes:|Bonilla, Jones,           |     |                          |
          |     |Bocanegra, Campos,        |     |                          |
          |     |Eggman, Gordon, Hagman,   |     |                          |
          |     |Maienschein, Mullin,      |     |                          |
          |     |Skinner, Ting, Wilk       |     |                          |
          |     |                          |     |                          |
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          SUMMARY  :  Requires the warranty period for hearing aids to begin  
          on the initial date of delivery to the buyer instead of on the  
          date of completion of fitting, extends the 30-day warranty  
          period to 45 days, and requires the written warranty to specify  
          the initial date of delivery and the expiration date of the  
          warranty.  Specifically,  this bill  :  

          1)Requires all new and used hearing aids sold in California to  
            be accompanied by the retail seller's written warranty which  
            shall contain the following language:  

               This hearing aid is warranted to be specifically fit  
               for the particular needs of you, the buyer.  If the  
               hearing aid is not initially fit for your particular  
               needs, it may be returned to the seller within 45 days  
               of the initial date of delivery to you.  If you return  
               the hearing aid, the seller will either adjust or  
               replace the hearing aid or promptly refund the total  
               amount paid.  This warranty does not affect the  
               protections and remedies you have under other laws.

          2)Authorizes the retail seller to specify any longer period for  
            the return of an unfit hearing aid. 

          3)On the initial date of delivery, requires the seller to revise  
            the written warranty to include the initial date of delivery  
            to the buyer and the expiration date of the warranty. 








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          4)Requires, if the warranty period relating to an implied or  
            express warranty has tolled for specified reasons, that the  
            warranty period for hearing aids resumes on the date upon  
            which the repaired or serviced hearing aid is delivered to the  
            buyer, or five days after the buyer is notified the hearing  
            aid is repaired or serviced and is available for the buyer's  
            possession, whichever is earlier.

          5)Requires a hearing aid seller, after receiving the hearing aid  
            for warranty repairs or service, to provide to the buyer at  
            the time of delivery a work order or receipt that specifies  
            the date the warranty period resumes and the revised  
            expiration date of the warranty, as adjusted to reflect the  
            suspension of the warranty period under the tolling  
            provisions. 
           
          FISCAL EFFECT  :  None.  This bill is keyed non-fiscal by the  
          Legislative Counsel.  



           COMMENTS  :   

          1)This bill extends the statutory warranty period for hearing  
            aids and clarifies warranty tolling provisions.  This bill is  
            sponsored by Hearing Healthcare Providers California.
           
           2)According to the author, "The technology of hearing aids has  
            advanced significantly since Song-Beverly was introduced in  
            1979.  At that time, hearing aids were analog; 'fitting' them  
            meant turning the volume up or down.  Modern digital hearing  
            aids convert sound into a code that can be adjusted to amplify  
            specific parts of the sound to meet an individual's needs.   
            Due to this additional complexity, the fitting of a hearing  
            aid takes longer, with each fitting requiring the hearing aid  
            be returned to the provider for adjustment? The problem lies  
            with the several interpretation[s] of what completion of  
            fitting means in Song-Beverly.  Currently, the 30 days may  
            toll, only to be restarted with each successive trip to the  
            provider.  The result is a warranty period that can last  
            upwards of a year or more? The purpose of this bill is to  
            provide a defined and reliable warranty period for new and  
            used hearing aid devices."








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          3)Technological advances in digital hearing aids have increased  
            the effectiveness of hearing aids dramatically, which have  
            also increased the cost and complexity of these devices.   
            Hearing aids may range from a few hundred to a few thousand  
            dollars (and costs may double if two hearing aids are  
            required), and "fitting" the hearing aid may require multiple  
            visits and readjustments. 

          4)In California, the SpeechLanguage Pathology and Audiology  
            Board (Board) licenses and regulates over 700 audiologists,  
            over 900 dispensing audiologists, and over 1,000 hearing aid  
            dispensers.  Audiologists provide services to individuals with  
            hearing, balance, and related communic5)ative disorders, and  
            dispensing audiologists are licensed audiologists who are  
            certified to fit and sell hearing aids.  Hearing aid  
            dispensers fit or sell hearing aids to individuals with  
            impaired hearing.  

          These licensees are required to provide to the buyer of a  
            hearing aid a written receipt signed by, or on behalf of, the  
            licensee that contains, among other things, the date of the  
            sale, specifications on the hearing aid sold, the address  
            where the licensee shall be available to fit, adjust, or  
            service the hearing aid, and the terms of any guarantee or  
            written warranty as required by the Song-Beverly Act, which  
            provides warranty provisions for consumers of assistive  
            devices.  

          6)The product warranty or "right of return" provisions of  
            Song-Beverly apply to the sale and refund of hearing aids.   
            According to the Board's 2012 Sunset Report, the provisions of  
            Song-Beverly have been difficult to enforce because the  
            warranty language is vague and is interpreted in several  
            different ways, with the resulting confusion hurting both the  
            consumer and the hearing aid dispenser.   

          Currently, Song-Beverly requires that every sale of an assistive  
            device at retail be accompanied by the retail seller's implied  
            warranty that the device is specifically fit for the  
            particular needs of the buyer.  Song-Beverly also requires  
            that at the time of sale, the assistive device include the  
            retail seller's written warranty which states that the device  
            is warranted to be specifically fit for the particular needs  








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            of the buyer and that it may be returned to the seller "within  
            30 days of the date of receipt or completion of the fitting,  
            whichever comes later," so that the seller can either adjust  
            or replace the device, or refund the amount paid if the device  
            is not fit for the buyer's needs.  

          In its Sunset Report, the Board found that the term "completion  
            of the fitting" does not have a meaning that is universally  
            understood or agreed upon by either the retailer or the buyer.  
             As a result, the retailer must ultimately determine when the  
            device is deemed "fit," and the buyer must also be in  
            agreement because the term implies some level of satisfaction  
            with the fit of the hearing aid.  Often, an agreement cannot  
            be reached, and the hearing aid dispenser is faced with  
            ongoing adjustments and exchanges with no foreseeable end date  
            to the 30-day warranty period.  The Board states that it is  
            difficult to enforce or even clearly delineate a warranty  
            period that is interpreted to start on the date the consumer  
            was satisfied.   

          This bill would modify the warranty provisions for hearing aids  
            by eliminating the "completion of fitting" standard that can  
            determine the start of the warranty period, which could lead  
            to an overall shorter warranty period, but would also increase  
            that existing 30-day period to 45 days based on date of  
            receipt.  The purpose is to prevent the warranty clock from  
            "restarting" at 30 days every time a hearing aid is adjusted,  
            which in some cases can cause a 30-day warranty to last  
            multiple months.  This bill would start the warranty "clock"  
            upon initial delivery, only stopping or "tolling" when the  
            hearing aid is being repaired or refitted, and would require  
            disclosures of the warranty expiration date and provisions for  
            tolling. These changes, in addition to changes clarifying when  
            the tolling provisions resume, would provide clear guidance to  
            buyers and retailers to help them understand the warranty  
            period.  


           Analysis Prepared by  :    Eunie Linden / B., P. & C.P. / (916)  
          319-3301 


                                                                FN: 0004117









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