BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1926
                                                                  Page  1

          Date of Hearing:   April 18, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                AB 1926 (Solorio) - As Introduced:  February 22, 2012 

          Policy Committee:                              Business and 
          Professions  Vote:                            9 - 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. eyeglasses, contact lenses, sports 
          goggles) 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 18,900 licensees.  It is estimated that 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 1926
                                                                  Page  2

           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.


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081