California 2009-2010 Regular Session Status: Enacted

AB 2111 — Service contracts.

Last action — Chaptered by Secretary of State - Chapter 543, Statutes of 2010.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Assembly
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 18, 2010. Enacted.

Prognosis

Likely to advance 70% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 8 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

(1) Existing law, the Electronic and Appliance Repair Dealer Registration Law, makes it unlawful for any person to act as a service contract administrator or a service contract seller without first registering with the Bureau of Electronic and Appliance Repair, Home Furnishings, and Thermal Insulation. Existing law regulates service contracts, as defined, relating to maintenance or repair of, among other things, specified sets and appliances. A service contract may include provisions for incidental payment of indemnity, not exceeding the retail value of $250 per year. Existing law prohibits a service contract administrator, as defined, from being an obligor, as defined, on a service contract and existing law requires these service contract administrators to maintain a service contract reimbursement insurance policy, as defined. This bill would change the definition of service contract by expanding the items a contract may cover to include accessories of electronic sets or appliances and by excluding a contract to maintain structural wiring associated with communications services. The bill would delete the $250 per year limit on incidental payment of indemnity. The bill would also change the definition of service contract administrator to no longer exclude service contract sellers and insurers admitted to do business in the state and to no longer include an affiliate who performs or arranges specified activities. The bill would authorize a service contract administrator to be an obligor on a service contract where all service contracts under which the service contract administrator is obligated are insured under a service contract reimbursement insurance policy. Existing law defines a service contract seller as a person who sells or offers to sell a service contract to a service contractholder, including a person who is the obligor under a service contract sold by the seller, manufacturer, or repairer of the product covered by the service contract. This bill would specify that a service contract seller also means a 3rd party, including an obligor who is not the seller, manufacturer, or repairer of the product and does not include specified financial institutions or specified electrical device manufacturers or electrical contractors. The bill would require a 3rd-party obligor to obtain a service contract reimbursement insurance policy. The bill would specify that a service contract administrator or a 3rd-party seller acting as an obligor without a service contract reimbursement insurance policy shall be deemed to be unlawfully transacting the business of insurance and therefore subject to specified criminal and monetary penalty provisions. Because willfully transacting the business of insurance without a certificate of authority would constitute a crime, the bill would impose a state-mandated local program. Existing law prohibits a service contract seller from issuing a service contract without complying with specific requirements. This bill would instead prohibit a service contract seller from issuing a service contract unless the obligor under the contract has complied with specific requirements. Existing law makes these provisions relating to service contracts inoperative on January 1, 2013. This bill would extend the operation of these provisions to January 1, 2018. The bill would make other technical and clarifying changes. (2) Existing law prohibits a service contract covering any motor vehicle, home appliance, or home electronic product purchased for use in this state from being offered for sale or sold unless several elements exist, including that the contract is cancelable by the purchaser under certain conditions. Existing law provides for either a full or pro rata refund depending on the circumstances. This bill would enact new provisions applicable to pro rata refunds made in the case of canceled vehicle service contracts. (3) Existing law defines vehicle service contract for purposes of provisions relating to sellers of vehicles, and exempts a warranty provided by a vehicle glass manufacturer from the requirements governing a vehicle service contract. This bill would add a warranty provided by a glass sealant manufacturer to the exemption. (4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Bill Text

Action History

  1. Chaptered by Secretary of State - Chapter 543, Statutes of 2010.

  2. Approved by the Governor.

  3. Enrolled and to the Governor at 11:45 p.m.

  4. Senate amendments concurred in. To enrollment. (Ayes 76. Noes 0. Page 6485.)

  5. Assembly Rule 77 suspended. (Page 6463.)

  6. In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 24 pursuant to Assembly Rule 77.

  7. Read third time, passed, and to Assembly. (Ayes 31. Noes 0. Page 4712.)

  8. Read second time. To third reading.

  9. Read third time, amended. To second reading.

  10. Ordered to third reading.

  11. From Special Consent Calendar pursuant to Joint Rule 22.2.

  12. Ordered to Special Consent Calendar.

  13. Read second time. To third reading.

  14. From committee: Be placed on second reading file pursuant to Senate Rule 28.8.

  15. From committee: Do pass, and re-refer to Com. on APPR. Re-referred. (Ayes 4. Noes 0.) (June 29).

  16. From committee: Do pass, and re-refer to Com. on JUD. Re-referred. (Ayes 6. Noes 0.) (June 21).

  17. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B., P. & E.D.

  18. Referred to Coms. on B., P. & E.D. and JUD.

  19. In Senate. Read first time. To Com. on RLS. for assignment.

  20. Read third time, passed, and to Senate. (Ayes 63. Noes 0. Page 5343.)

  21. Read second time. To Consent Calendar.

  22. From committee: Do pass. To Consent Calendar. (May 19).

  23. Re-referred to Com. on APPR.

  24. From committee chair, with author's amendments: Amend, and re-refer to Com. on APPR. Read second time and amended.

  25. Re-referred to Com. on APPR.

  26. Read second time and amended.

  27. From committee: Amend, and do pass as amended, and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 12. Noes 0.) (April 21).

  28. Re-referred to Com. on INS.

  29. Read second time and amended.

  30. From committee: Amend, do pass as amended, and re-refer to Com. on INS. (Ayes 11. Noes 0.) (April 6).

  31. Re-referred to Com. on B. & P.

  32. From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & P. Read second time and amended.

  33. Referred to Coms. on B. & P. and INS.

  34. From printer. May be heard in committee March 21.

  35. Read first time. To print.

Sponsors

  • Smyth · Primary

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

  • Smyth

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

AB 2111 SMYTH Concurrence in Senate Amendments

Passed 88 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 82002
Democratic 3000
Republican 3000
Total 88002
% of votes cast 98%0%0%2%
How each member voted (90)
Member Party Vote
Hall — Yea
Bill — Yea
Adams — Yea
Anderson — Yea
Beall — Yea
Tom — Yea
Feuer — Yea
Fuentes — Yea
Galgiani — Yea
Charles — Yea
Garrick — Yea
Gilmore — Yea
Hagman — Yea
Harkey — Yea
Hayashi — Yea
De — Yea
La — Yea
Torre — Yea
De — Yea
Leon — Yea
Hill — Yea
Fletcher — Yea
Fong — Yea
Bonnie — Yea
Lowenthal — Yea
V. — Yea
Manuel — Yea
Perez — Yea
Portantino — Yea
Salas — Yea
Saldana — Yea
Audra — Yea
Carter — Yea
Chesbro — Yea
Conway — Yea
Cook — Yea
Coto — Yea
DeVore — Yea
Huber — Yea
Jeffries — Yea
Knight — Yea
Logue — Yea
Mendoza — Yea
Miller — Yea
Monning — Yea
Nestande — Yea
Norby — Yea
Ruskin — Yea
Skinner — Yea
Smyth — Yea
Swanson — Yea
Torlakson — Yea
Torrico — Yea
Tran — Yea
John — Yea
A. — Yea
Perez — Yea
Yamada — Yea
Furutani — Not Voting
Villines — Yea
Ammiano — Yea
Bass — Yea
Block — Yea
Blumenfield — Yea
Bradford — Yea
Brownley — Yea
Buchanan — Yea
Hernandez — Yea
Huffman — Yea
Lieu — Yea
Ma — Yea
Nava — Yea
Nielsen — Yea
Silva — Yea
Solorio — Yea
Torres — Yea
Eng — Yea
Evans — Yea
Davis — Not Voting
Fuller — Yea
Gatto — Yea
Beth Gaines — Yea
Bill Berryhill — Yea
Bill Berryhill — Yea
Arambula, Joaquin Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Yea
Strickland, Tony Republican Yea

Official roll call →

Assembly 3rd Reading AB2111 Smyth By Emmerson

Passed 32 Yea · 0 Nay · 7 Other
Party YeaNayPresentNot Voting
Unaffiliated 29007
Democratic 2000
Republican 1000
Total 32007
% of votes cast 82%0%0%18%
How each member voted (39)
Member Party Vote
Yee — Yea
Liu — Yea
Corbett — Yea
Ducheny — Yea
Dutton — Yea
Hancock — Yea
Hollingsworth — Yea
Huff — Yea
Kehoe — Yea
Lowenthal — Yea
Negrete — Yea
Runner — Yea
Cogdill — Not Voting
Oropeza — Not Voting
Price — Yea
Romero — Yea
Simitian — Yea
Steinberg — Yea
Wiggins — Not Voting
Wright — Yea
Aanestad — Yea
Alquist — Yea
Ashburn — Yea
Harman — Not Voting
Leno — Yea
McLeod — Yea
Pavley — Yea
Walters — Not Voting
Wolk — Yea
Cedillo — Yea
Wyland — Yea
Emmerson — Yea
Correa — Yea
DeSaulnier — Yea
Denham — Not Voting
Florez — Not Voting
Calderon, Lisa Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Yea

Official roll call →

Do pass, but re-refer to the Committee on Judiciary.

Passed 7 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 6003
Democratic 1000
Total 7003
% of votes cast 70%0%0%30%
How each member voted (10)
Member Party Vote
Yee — Yea
Wyland — Not Voting
Negrete — Yea
McLeod — Yea
Oropeza — Not Voting
Aanestad — Yea
Walters — Not Voting
Correa — Yea
Florez — Yea
Calderon, Lisa Democratic Yea

Official roll call →

AB 2111 SMYTH Consent Calendar Second Day

Passed 69 Yea · 0 Nay · 22 Other
Party YeaNayPresentNot Voting
Unaffiliated 640021
Democratic 3000
Republican 2001
Total 690022
% of votes cast 76%0%0%24%
How each member voted (91)
Member Party Vote
Conway — Yea
Cook — Yea
Coto — Yea
Davis — Yea
Charles — Yea
Adams — Yea
Anderson — Yea
Block — Yea
Fletcher — Yea
Fong — Yea
Bonnie — Yea
Lowenthal — Yea
V. — Yea
Manuel — Yea
Perez — Yea
Portantino — Yea
Saldana — Yea
John — Yea
A. — Yea
Perez — Yea
Chesbro — Not Voting
Bill — Not Voting
Tom — Not Voting
Evans — Yea
Fuentes — Yea
De — Not Voting
La — Not Voting
Torre — Not Voting
De — Not Voting
Leon — Not Voting
Salas — Not Voting
Audra — Not Voting
Blakeslee — Not Voting
Fuller — Yea
Galgiani — Yea
Garrick — Yea
Hagman — Yea
Hall — Not Voting
Hayashi — Yea
Hernandez — Yea
Huber — Yea
Huffman — Yea
Knight — Yea
Lieu — Yea
Logue — Yea
Mendoza — Yea
Miller — Yea
Nava — Yea
Nestande — Yea
Norby — Yea
Ruskin — Yea
Silva — Not Voting
Smyth — Not Voting
Solorio — Yea
Torlakson — Yea
Torres — Yea
Tran — Yea
Villines — Yea
Ammiano — Yea
Bass — Not Voting
Beall — Yea
Blumenfield — Yea
Bradford — Yea
Brownley — Yea
Buchanan — Yea
Harkey — Yea
Hill — Yea
Jeffries — Not Voting
Ma — Yea
Monning — Yea
Nielsen — Yea
Skinner — Yea
Swanson — Yea
Torrico — Yea
Carter — Not Voting
Emmerson — Not Voting
Eng — Yea
Feuer — Yea
DeVore — Yea
Yamada — Yea
Furutani — Not Voting
Gilmore — Yea
Beth Gaines — Yea
Bill Berryhill — Not Voting
Bill Berryhill — Not Voting
Arambula, Joaquin Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Yea
Strickland, Tony Republican Not Voting

Official roll call →

Do pass, to Consent Calendar.

Passed 17 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 16002
Democratic 1000
Total 17002
% of votes cast 89%0%0%11%
How each member voted (19)
Member Party Vote
Conway — Yea
Charles — Yea
Bradford — Yea
Coto — Yea
De — Not Voting
Leon — Not Voting
Hill — Yea
Norby — Yea
Skinner — Yea
Solorio — Yea
Torlakson — Yea
Harkey — Yea
Miller — Yea
Nielsen — Yea
Torrico — Yea
Hall — Yea
Davis — Yea
Fuentes — Yea
Calderon, Lisa Democratic Yea

Official roll call →

Do pass as amended and re-refer to Committee on Appropriations with recommendation: To Consent Calendar.

Passed 13 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 10000
Democratic 2000
Republican 1000
Total 13000
% of votes cast 100%0%0%0%
How each member voted (13)
Member Party Vote
Carter — Yea
Hagman — Yea
Hayashi — Yea
Charles — Yea
Salas — Yea
Anderson — Yea
Torres — Yea
Blakeslee — Yea
Solorio — Yea
Feuer — Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Niello, Roger W. Republican Yea

Official roll call →

Subjects

finance technology
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Frequently asked questions

What does AB 2111 do?
(1) Existing law, the Electronic and Appliance Repair Dealer Registration Law, makes it unlawful for any person to act as a service contract administrator or a service contract seller without first registering with the Bureau of Electronic and Appliance Repair, Home Furnishings, and Thermal Insulation. Existing law regulates service contracts, as defined, relating to maintenance or repair of, among other things, specified sets and appliances. A service contract may include provisions for incidental payment of indemnity, not exceeding the retail value of $250 per year. Existing law prohibits a service contract administrator, as defined, from being an obligor, as defined, on a service contract and existing law requires these service contract administrators to maintain a service contract reimbursement insurance policy, as defined. This bill would change the definition of service contract by expanding the items a contract may cover to include accessories of electronic sets or appliances and by excluding a contract to maintain structural wiring associated with communications services. The bill would delete the $250 per year limit on incidental payment of indemnity. The bill would also change the definition of service contract administrator to no longer exclude service contract sellers and insurers admitted to do business in the state and to no longer include an affiliate who performs or arranges specified activities. The bill would authorize a service contract administrator to be an obligor on a service contract where all service contracts under which the service contract administrator is obligated are insured under a service contract reimbursement insurance policy. Existing law defines a service contract seller as a person who sells or offers to sell a service contract to a service contractholder, including a person who is the obligor under a service contract sold by the seller, manufacturer, or repairer of the product covered by the service contract. This bill would specify that a service contract seller also means a 3rd party, including an obligor who is not the seller, manufacturer, or repairer of the product and does not include specified financial institutions or specified electrical device manufacturers or electrical contractors. The bill would require a 3rd-party obligor to obtain a service contract reimbursement insurance policy. The bill would specify that a service contract administrator or a 3rd-party seller acting as an obligor without a service contract reimbursement insurance policy shall be deemed to be unlawfully transacting the business of insurance and therefore subject to specified criminal and monetary penalty provisions. Because willfully transacting the business of insurance without a certificate of authority would constitute a crime, the bill would impose a state-mandated local program. Existing law prohibits a service contract seller from issuing a service contract without complying with specific requirements. This bill would instead prohibit a service contract seller from issuing a service contract unless the obligor under the contract has complied with specific requirements. Existing law makes these provisions relating to service contracts inoperative on January 1, 2013. This bill would extend the operation of these provisions to January 1, 2018. The bill would make other technical and clarifying changes. (2) Existing law prohibits a service contract covering any motor vehicle, home appliance, or home electronic product purchased for use in this state from being offered for sale or sold unless several elements exist, including that the contract is cancelable by the purchaser under certain conditions. Existing law provides for either a full or pro rata refund depending on the circumstances. This bill would enact new provisions applicable to pro rata refunds made in the case of canceled vehicle service contracts. (3) Existing law defines vehicle service contract for purposes of provisions relating to sellers of vehicles, and exempts a warranty provided by a vehicle glass manufacturer from the requirements governing a vehicle service contract. This bill would add a warranty provided by a glass sealant manufacturer to the exemption. (4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.
Who sponsors AB 2111?
AB 2111 is sponsored by Smyth.
What is the current status of AB 2111?
This bill has been enacted into law. Introduced February 18, 2010. Enacted.
Where can I track AB 2111?
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