BILL ANALYSIS
AB 2111
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2111 (Smyth)
As Amended August 16, 2010
Majority vote
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|ASSEMBLY: |63-0 |(May 28, 2010) |SENATE: |31-0 |(August 20, |
| | | | | |2010) |
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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
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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