HOUSE BILL NO. 493
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H0493...........................................................by BUSINESS
SERVICE CONTRACTS - Amends existing law relating to insurance to provide
that "service contracts" may provide for the repair, replacement or
maintenance of property for damage resulting from power surges and for
accidental damage from handling.
02/08 House intro - 1st rdg - to printing
02/11 Rpt prt - to Bus
02/20 Rpt out - rec d/p - to 2nd rdg
02/21 2nd rdg - to 3rd rdg
02/22 3rd rdg - PASSED - 63-0-7
AYES -- Anderson, Barrett, Bayer, Bell, Bilbao, Black, Block, Bock,
Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon, Chavez, Chew,
Clark, Collins, Crane, Durst, Eskridge, Hagedorn, Hart, Harwood,
Henbest, Henderson, Jaquet, Killen, King, Labrador, Lake, LeFavour,
Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Moyle,
Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Ringo, Roberts,
Ruchti, Rusche, Sayler, Schaefer, Shepherd(02), Shepherd(08),
Shirley, Shively, Smith(30)(Stanek), Snodgrass, Thayn, Thomas, Trail,
Vander Woude, Wills, Wood(35), Mr. Speaker
NAYS -- None
Absent and excused -- Andrus, Bedke, Kren, Raybould, Smith(24),
Stevenson, Wood(27)
Floor Sponsor - Snodgrass
Title apvd - to Senate
02/25 Senate intro - 1st rdg - to Com/HuRes
02/29 Rpt out - rec d/p - to 2nd rdg
03/03 2nd rdg - to 3rd rdg
03/06 3rd rdg - PASSED - 34-0-1
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
Cameron, Coiner, Corder, Darrington, Fulcher, Gannon, Geddes, Goedde,
Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little,
Lodge, Malepeai(Sagness), McGee, McKague, McKenzie, Pearce,
Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
NAYS -- None
Absent and excused -- Davis
Floor Sponsor - Goedde
Title apvd - to House
03/07 To enrol
03/10 Rpt enrol - Sp signed
03/11 Pres signed - To Governor
03/17 Governor signed
Session Law Chapter 137
Effective: 07/01/08
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature Second Regular Session - 2008
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 493
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO INSURANCE; AMENDING SECTION 41-114A, IDAHO CODE, TO PROVIDE THAT
3 "SERVICE CONTRACTS" MAY PROVIDE FOR THE REPAIR, REPLACEMENT, OR MAINTE-
4 NANCE OF PROPERTY FOR DAMAGE RESULTING FROM POWER SURGES AND FOR ACCIDEN-
5 TAL DAMAGE FROM HANDLING.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 41-114A, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 41-114A. SERVICE CONTRACTS. (1) The term "service contract," as used in
10 this section, means a contract or agreement for a separately stated consider-
11 ation for a specific duration to perform the repair, replacement or mainte-
12 nance of property or to reimburse, in whole or in part, the owner of such
13 property for the repair, replacement or maintenance of property if an opera-
14 tional or structural failure is due to a defect in materials or manufacturing
15 or to normal wear and tear. A service contract may contain a provision for
16 incidental payment under such contract where service, repair or replacement is
17 not feasible or economical. Service contracts, other than motor vehicle ser-
18 vice contracts subject to the provisions of the Idaho motor vehicle service
19 contract act, chapter 28, title 49, Idaho Code, may provide for the repair,
20 replacement or maintenance of property for damage resulting from power surges
21 and accidental damage from handling.
22 (2) The marketing, sale, offering for sale, issuance, making, proposing
23 to make, and administration of a service contract is exempt from the provi-
24 sions of title 41, Idaho Code.
25 (3) Service contracts shall be subject to the provisions of the Idaho
26 consumer protection act, chapter 6, title 48, Idaho Code.
STATEMENT OF PURPOSE
RS 17757
Currently, Idaho law only allows consumers to purchase service
contracts (sometimes called extended warranties) for damage
resulting from manufacturing defects or by normal wear and tear
as opposed to defects caused by accidental damage. It is often
difficult to determine, however, what constitutes a
"manufacturing defect" or "normal wear and tear" and what
constitutes "accidental damage." In addition, consumers often
assume that service contracts include coverage for damage
resulting from an accident or from a power surge. This
legislation allows a manufacturer to provide service contract
coverage for the repair, replacement, or maintenance of a product
for accidental damage or damage resulting from a power surge, not
just for manufacturing defects or normal wear and tear.
FISCAL NOTE
There will be no fiscal impact to the general fund.
CONTACT
Name: Ken McClure
Jeremy Chou
Phone: 388-1200
STATEMENT OF PURPOSE/FISCAL NOTE H 493