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2019 SESSION

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HB 2038 Extended service contract providers; bonding requirement, remedies, civil penalty.

Introduced by: Margaret B. Ransone | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Extended service contracts; bonding requirement; remedies; civil penalty. Eliminates the requirement that extended service contract providers file and maintain a bond or letter of credit with the Commissioner of the Department of Agriculture and Consumer Services (VDACS). The bill also (i) requires service contracts to include a disclosure advising a purchaser that he may file a complaint with VDACS if an obligor denies or does not honor a promise made in a contract within 60 days after a request; (ii) authorizes the Commissioner of VDACS, upon receiving a complaint regarding such a request, to investigate whether there has been an improper denial or failure of a purchaser's request and require the obligor to rectify or justify any improper denial or failure; and (iii) authorizes the Commissioner to (a) issue a cease and desist order; (b) deny, suspend, or revoke the obligor's registration; or (c) assess a civil penalty if the denial or failure is not rectified or sufficiently justified. The bill includes procedural provisions concerning the Commissioner's powers to deny, suspend, or revoke an obligor's registration. This bill is identical to SB 1188.

SUMMARY AS PASSED HOUSE:

Extended service contracts; bonding requirement; remedies; civil penalty. Eliminates the requirement that extended service contract providers file and maintain a bond or letter of credit with the Commissioner of the Department of Agriculture and Consumer Services (VDACS). The bill also (i) requires service contracts to include a disclosure advising a purchaser that he may file a complaint with VDACS if an obligor denies or does not honor a promise made in a contract within 60 days after a request; (ii) authorizes the Commissioner of VDACS, upon receiving a complaint regarding such a request, to investigate whether there has been an improper denial or failure of a purchaser's request and require the obligor to rectify or justify any improper denial or failure; and (iii) authorizes the Commissioner to (a) issue a cease and desist order; (b) deny, suspend, or revoke the obligor's registration; or (c) assess a civil penalty if the denial or failure is not rectified or sufficiently justified. The bill includes procedural provisions concerning the Commissioner's powers to deny, revoke, or suspend an obligor's registration. This bill is identical to SB 1188.

SUMMARY AS INTRODUCED:

Extended service contracts; bonding requirement; remedies; civil penalty. Eliminates the requirement that extended service contract providers file and maintain a bond or letter of credit with the Commissioner of the Department of Agriculture and Consumer Services. The measure also (i) requires service contracts to include a disclosure advising a purchaser that he may file a complaint with the Department of Agriculture and Consumer Services if an obligor denies or does not honor a promise made in a contract within 60 days after a request; (ii) authorizes the Commissioner of Agriculture and Consumer Services, upon receiving a complaint regarding such a request, to investigate whether there has been an improper denial or failure of a purchaser's request and require the obligor to rectify or justify any improper denial or failure; and (iii) authorizes the Commissioner to (a) issue a cease and desist order; (b) deny, suspend, or revoke the obligor's registration; or (c) assess a civil penalty if the denial or failure is not rectified or sufficiently justified. The measure includes procedural provisions concerning the Commissioner's powers to deny, revoke, or suspend an obligor's registration.