BILL ANALYSIS Ó SB 1326 Page 1 SENATE THIRD READING SB 1326 (Roth) As Amended June 18, 2014 Majority vote SENATE VOTE :37-0 BUSINESS & PROFESSIONS 12-0 ----------------------------------------------------------------- |Ayes:|Bonilla, Jones, | | | | |Bocanegra, Campos, | | | | |Eggman, Gordon, Hagman, | | | | |Maienschein, Mullin, | | | | |Skinner, Ting, Wilk | | | | | | | | ----------------------------------------------------------------- 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. SB 1326 Page 2 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." SB 1326 Page 3 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 SB 1326 Page 4 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 SB 1326 Page 5