HOUSE BILL NO. 493

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Bill Status



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

Bill Text




                                                                       
  ]]]]              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 / Fiscal Impact


                      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