Home service contract providers; shifts responsibility for regulating to Commissioner of the DACS. (HB1542)

Introduced By

Del. Terry Kilgore (R-Gate City)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Home service contract providers. Shifts responsibility for regulating home service contract providers from the State Corporation Commission to the Commissioner of the Department of Agriculture and Consumer Services. The measure provides that home service contracts are not contracts of insurance and are not subject to regulation under the Commonwealth's insurance laws. Home service contracts are agreements to perform the service repair, replacement, or maintenance, or indemnification therefor, with regard to components, parts, appliances, or systems of a residential home property. Providers of such contracts are required to register with the Commissioner, which registration shall not require filing of forms or rate information. Providers are required to maintain a funded reserve account for their obligations under the contracts that is not less than 40 percent of gross consideration received, less claims paid, on the sale of the home service contract for all in-force home service contracts sold in the Commonwealth. Providers are also required to file a bond with the Commissioner. In lieu of the requirements for a reserve account and bond, a provider may demonstrate financial responsibility by filing a copy of a liability insurance policy that covers 100 percent of the provider's home service contract liabilities. The measure includes provisions addressing the adoption of regulations, investigations, production of records, and penalties for violations that are similar to the existing provisions applicable to extended service contract providers. Providers with a net worth in excess of $100 million are exempt from the provisions of the measure. Amends § 38.2-100, § 38.2-2600, § 38.2-2601, § 38.2-2602, § 38.2-2604, § 38.2-2605, § 38.2-2613, § 38.2-2615, § 59.1-200, of the Code of Virginia. Read the Bill »

Outcome

Bill Has Passed

History

DateAction
12/28/2016Committee
12/28/2016Prefiled and ordered printed; offered 01/11/17 17100808D
12/28/2016Referred to Committee on Commerce and Labor
01/17/2017Impact statement from DPB (HB1542)
01/26/2017Reported from Commerce and Labor with substitute (21-Y 0-N) (see vote tally)
01/26/2017Committee substitute printed 17104686D-H1
01/30/2017Read first time
01/31/2017Passed by for the day
02/01/2017Read second time
02/01/2017Committee substitute agreed to 17104686D-H1
02/01/2017Engrossed by House - committee substitute HB1542H1
02/02/2017Read third time and passed House (94-Y 1-N)
02/02/2017VOTE: PASSAGE (94-Y 1-N) (see vote tally)
02/03/2017Constitutional reading dispensed
02/03/2017Referred to Committee on Commerce and Labor
02/07/2017Impact statement from DPB (HB1542H1)
02/13/2017Reported from Commerce and Labor with substitute (14-Y 0-N) (see vote tally)
02/13/2017Committee substitute printed 17105419D-S1
02/15/2017Constitutional reading dispensed (40-Y 0-N) (see vote tally)
02/16/2017Read third time
02/16/2017Reading of substitute waived
02/16/2017Committee substitute agreed to 17105419D-S1
02/16/2017Engrossed by Senate - committee substitute HB1542S1
02/16/2017Passed Senate with substitute (39-Y 0-N) (see vote tally)
02/16/2017Reconsideration of Senate passage agreed to by Senate (40-Y 0-N) (see vote tally)
02/16/2017Passed Senate with substitute (40-Y 0-N) (see vote tally)
02/20/2017Placed on Calendar
02/20/2017Senate substitute agreed to by House 17105419D-S1 (93-Y 1-N)
02/20/2017VOTE: ADOPTION (93-Y 1-N) (see vote tally)
02/21/2017Impact statement from DPB (HB1542S1)
02/23/2017Enrolled
02/23/2017Bill text as passed House and Senate (HB1542ER)
02/23/2017Signed by Speaker
02/24/2017Impact statement from DPB (HB1542ER)
02/24/2017Signed by President
02/28/2017Enrolled Bill communicated to Governor on 2/28/17
02/28/2017G Governor's Action Deadline Midnight, March 27, 2017
03/24/2017G Approved by Governor-Chapter 727 (effective 1/1/18)
03/24/2017G Acts of Assembly Chapter text (CHAP0727)

Video

This bill was discussed on the floor of the General Assembly. Below is all of the video that we have of that discussion, 1 clip in all, totaling 50 seconds.

Transcript

This is a transcript of the video clips in which this bill is discussed.

COALFIELDS. 9.3 MILLION. IF WE SAVE THAT, WE'VE GOT 9.3 MILLION TO PUT IN THE COALFIELDS. THAT WOULD HELP THAT INITIATIVE, IT WOULD HELP A LOT OF PEOPLE IN THE COALFIELDS. I SUBMIT TO THE BODY THAT IF WE REJECT THIS BILL, WE'LL HAVE 9.3 MILLION TO DO WHAT FOLKS IN THE COALFIELDS WANT, AND THAT IS TO GET SOME ECONOMIC ACTIVITY. THANK YOU, MR. SPEAKER.

Del. Terry Kilgore (R-Gate City): MR. SPEAKER? MR. SPEAKER? THE GENTLEMAN FROM MONTGOMERY, MR. RUSH.

Del. Nick Rush (R-Christiansburg): SPEAKING TO THE BILL.

Del. Bill Howell (R-Fredericksburg): GENTLEMAN HAS THE FLOOR.

Del. Nick Rush (R-Christiansburg): MR. SPEAKER, THE REASON WE HAD TO DO THE 10, 10, 10 PLAN WAS BECAUSE OF DECLINING ENROLLMENTS. THIS TAX CREDIT WILL HELP WITH JOBS AND KEEPING FAMILIES IN