BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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          |SENATE RULES COMMITTEE            |                       SB 1326|
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                                 UNFINISHED BUSINESS


          Bill No:  SB 1326
          Author:   Roth (D)
          Amended:  6/18/14
          Vote:     21

           
           SENATE BUSINESS, PROF. & ECON. DEV.COMM.  :  8-0, 4/7/14
          AYES:  Lieu, Wyland, Berryhill, Block, Corbett, Galgiani, Hill,  
            Padilla
          NO VOTE RECORDED:  Hernandez, Vacancy

           SENATE JUDICIARY COMMITTEE  :  7-0, 4/29/14
          AYES:  Jackson, Anderson, Corbett, Lara, Leno, Monning, Vidak

           SENATE FLOOR  :  37-0, 5/5/14
          AYES:  Anderson, Beall, Berryhill, Block, Cannella, Corbett,  
            Correa, De León, DeSaulnier, Evans, Fuller, Gaines, Galgiani,  
            Hancock, Hernandez, Hill, Hueso, Huff, Jackson, Knight, Lara,  
            Leno, Lieu, Liu, Mitchell, Monning, Morrell, Nielsen, Padilla,  
            Pavley, Roth, Steinberg, Torres, Vidak, Walters, Wolk, Wyland
          NO VOTE RECORDED:  Calderon, Wright, Yee

           ASSEMBLY FLOOR  :  78-0, 8/7/14 - See last page for vote


           SUBJECT :    Hearing aids:  warranty:  work order or receipt

           SOURCE  :     Hearing Healthcare Providers California


           DIGEST  :    This bill clarifies hearing aid warranty provisions  
          by requiring a retailer to provide written warranty beginning  
          and expiration dates from the time the hearing aids are  
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          initially delivered to the buyer; clarifies the hearing aid  
          warranty tolling period after repair or service; and requires  
          the seller to provide a work order or receipt with the date the  
          warranty period resumes and the revised expiration date of the  
          warranty adjusted to reflect the suspension of the warranty  
          period during repair or service.

           Assembly Amendments  make technical changes.

           ANALYSIS  :    

          Existing law:

           1. Provides, under the Song-Beverly Consumer Warranty Act  
             (Song-Beverly), implied warranties and remedies relating to  
             new and used assistive devices.  

           2. Requires all new and used assistive devices sold in  
             California to contain the retail seller's written warranty,  
             in at least 10-point bold type, as follows:

                   The assistive device is warranted to be specifically  
                fit for the particular needs of the buyer;

                   The device may be returned to the seller within 30  
                days, or a longer period if specified by the seller, of  
                the date of actual receipt by the buyer or completion of  
                fitting by the seller, whichever occurs later, if the  
                device is not specifically fit for the buyer's particular  
                needs; and

                   The seller must either adjust or replace the device or  
                promptly refund the total amount paid by the buyer if the  
                buyer returns the device to the seller.  

           1. Provides that if the buyer returns the assistive device  
             within the written warranty period, the seller shall, without  
             charge and within a reasonable time, adjust the device or  
             replace it with a device that is specifically fit for the  
             particular needs of the buyer.  

           2. Provides that if the seller does not adjust or replace the  
             device so that it is specifically fit for the particular  
             needs of the buyer, the seller must promptly refund to the  

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             buyer the total amount paid for the assistive device and any  
             other consideration exchanged as part of the transaction, and  
             the sale is rescinded.  

           3. Provides that if a sale of assistive devices is rescinded,  
             the seller may not charge, penalize, or impose any other fee  
             on the buyer in connection with the purchase, fitting,  
             financing, or return of the device.  

           4. Provides that a warranty period is tolled for the period  
             from the date upon which the buyer either delivers  
             nonconforming goods to the seller for warranty repairs or  
             service, or notifies the seller of the nonconformity of the  
             goods, until the date upon which the repaired or serviced  
             goods are delivered to the buyer, the buyer is notified the  
             goods are repaired or serviced and are available, or the  
             buyer is notified that repairs or service is completed, if  
             repairs or service is made at the buyer's residence.  

           5. Provides that the warranty period shall not be deemed  
             expired if either or both of the following situations occur:

                   The warranty repairs or service has not been performed  
                due to delays caused by circumstances beyond the control  
                of the buyer; or
                   The warranty repairs or service performed upon the  
                nonconforming goods did not remedy the nonconformity for  
                which such repairs or service was performed and the buyer  
                notified the manufacturer or seller of this failure within  
                60 days after the repairs or service was completed.  

           1. Requires the seller to provide to the buyer a receipt  
             showing the date of purchase.  

           2. Provides that, if the seller performed warranty repairs or  
             service, the seller must provide to the buyer a work order or  
             receipt with the date of return and either the date the buyer  
             was notified that the goods were repaired or serviced or,  
             where applicable, the date the goods were shipped or  
             delivered to the buyer.  

          This bill:

           1. Revises existing warranty provisions for hearing aids to  

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             require the retail seller to provide to the buyer with a  
             written warranty that the hearing aid is specifically fit for  
             the particular needs of the buyer, and if the hearing aid is  
             not initially fit for the buyer's particular needs, the  
             hearing aid may be returned to the seller within 45 days of  
             the initial date of delivery to the buyer.  

           2. Provides that if the buyer returns the hearing aid to the  
             retail seller, the seller will either adjust or replace the  
             hearing aid or promptly refund the total amount paid.  

           3. Authorizes the retail seller to specify a warranty period  
             longer than 45 days.

           4. Requires the retail seller, on the initial date of delivery,  
             to revise the written warranty to include the initial date of  
             delivery to the buyer of the hearing aid and the expiration  
             date of the warranty.

           5. Specifies that the warranty period for hearing aids resumes  
             on the date upon which (a) the repaired or serviced hearing  
             aids are delivered to the buyer, or (b) five days after the  
             buyer is notified the hearing aids are repaired or serviced  
             and are available for the buyer's possession, whichever is  
             earlier.

           6. Requires hearing aid sellers, after receiving the hearing  
             aids for warranty repairs or service, to provide to the buyer  
             at the time of delivery to the buyer a work order or receipt  
             specifying (a) the date the warranty period resumes, and (b)  
             the revised expiration date of the warranty, as adjusted to  
             reflect the suspension of the warranty period. 

           Background
           
          In 1979, Song-Beverly established warranty provisions for  
          assistive devices, including hearing aids.  At that time,  
          hearing aids were analog and amplified all sounds equally, and a  
          completed fitting of the hearing aid primarily involved turning  
          the hearing aid sound up or down.  

          Since 1979, analog hearing aids have been slowly phased out in  
          favor of digital hearing aids, which utilize computer chips to  
          convert incoming sounds into a digital code.  The computer chips  

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          are adjusted based on each individual's hearing loss and  
          listening needs.  As such, a successful fitting of digital  
          hearing aids may take a year or more, and each fitting may  
          require a consumer to return the digital hearing aids to the  
          provider for additional adjustments.  

          Under Song-Beverly, hearing aid purchasers have 30 days from  
          actual receipt by the purchaser or completion of fitting by the  
          seller, whichever occurs later, to return the hearing aid for a  
          replacement or for a full refund.  (Civil Code Section  
          1793.02(a).)  With the advent of digital hearing aids and  
          extended timeframes for fittings, and because Song-Beverly  
          provides that the warranty begins at the time of completion of  
          fitting or actual possession of the hearing aid by the buyer,  
          whichever is later, hearing aid consumers and providers have  
          become uncertain as to when the warranty begins.  Further,  
          consumers may or may not recall or have documentation to support  
          the purchase or return dates over the course of the fitting  
          process.

          This bill revises the warranty and tolling provisions for  
          hearing aids under Song-Beverly to clarify the warranty period.   


           Comments
           
          The author writes:

            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 interpretations 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. 


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            The purpose of this bill is to provide a defined and reliable  
            warranty period for new and used hearing aid devices.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   Local:  
           No

           SUPPORT  :   (Verified  8/7/14)

          Hearing Healthcare Providers California (source)
          AA Hearing Aids Center
          Advanced Ear Care
          American Hearing Aid Center of the South Bay, Inc.
          Bartlett's Hearing Aids
          California Academy of Audiology
          Carlson's Hearing Aid Center
          Creekside Hearing Aid Service
          Gillett Hearing Aid Center
          Hearing Aid Systems, Inc.
          Miracle-Ear Center
          Sears Hearing Aid Centers
          Speech-Language Pathology & Audiology & Hearing Aid Dispensers  
           Board
          Twin Cities Hearing Aid Center
           ARGUMENTS IN SUPPORT  :    The bill's sponsor, the Hearing  
          Healthcare Providers California, and supporters write,  
          "Song-Beverly does not clearly define when certain warranty and  
          right of return provisions apply to hearing aids.  The vagueness  
          of these provisions leads to confusion by the hearing aid  
          dispenser and the consumer and makes it very difficult for the  
          Board to mediate consumer complaints when parties involved have  
          different interpretations of their rights and responsibilities."  


           ASSEMBLY FLOOR  :  78-0, 8/7/14
          AYES:  Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong,  
            Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,  
            Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hernández,  
            Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,  
            Maienschein, Mansoor, Medina, Melendez, Mullin, Muratsuchi,  
            Nazarian, Nestande, Olsen, Pan, Patterson, Perea, John A.  
            Pérez, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon,  

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            Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,  
            Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
          NO VOTE RECORDED:  Fox, Vacancy


          MW:k  8/8/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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