Bill Text: CA SB983 | 2021-2022 | Regular Session | Introduced

California Senate Bill 983 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Consumer warranty protection: express warranties.

Spectrum: Moderate Partisan Bill (Democrat 4-1)

Status: (Introduced - Dead) 2022-05-19 - May 19 hearing: Held in committee and under submission. [SB983 Detail]

Download: California-2021-SB983-Introduced.html

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill

No. 983

Introduced by Senator Eggman
(Coauthor: Senator Newman)
(Coauthors: Assembly Members Cristina Garcia and Ting)

February 14, 2022

An act to amend Sections 1793.03 and 1794.1 of the Civil Code, relating to consumer warranties.

LEGISLATIVE COUNSEL'S DIGEST

SB 983, as introduced, Eggman. Consumer warranty protection: express warranties.

Under existing law, every manufacturer making an express warranty with respect to an electronic or appliance product, including televisions, radios, audio or video recording equipment, major home appliances, antennas, and rotators, with a wholesale price to the retailer of not less than $50 nor more than $99.99 is required to make available to service and repair facilities sufficient service literature and functional parts to effect the repair of the product for at least 3 years after the date a product model or type was manufactured, regardless of whether the 3-year period exceeds the warranty period for the product. Existing law also requires every manufacturer making an express warranty with respect to an electronic or appliance product, as described above, with a wholesale price to the retailer of $100 or more, to make available to service and repair facilities sufficient service literature and functional parts to effect the repair of the product for at least 7 years after the date a product model or type was manufactured, regardless of whether the 7-year period exceeds the warranty period for the product.

This bill would instead require the manufacturer of an electronic or appliance product, in the above-described circumstances and timeframes, to make available, on fair and reasonable terms, sufficient service literature, at no charge, and prescribed functional parts and tools, including documentation, tools, software and parts needed to disable the lock or function during the course of the diagnosis, maintenance, or repair of a product, to owners of the product, service and repair facilities, and service dealers.

This bill would define terms for its purposes, and would provide that the above-specified provisions do not require a manufacturer to divulge a trade secret, except as may be necessary to provide service literature, documentation, tools, and parts on fair and reasonable terms.

Existing law authorizes a retail seller of consumer goods or an independent serviceman of consumer goods injured by the willful or repeated violation of the above provisions to bring a legal action for the recovery of damages. Existing law provides that a court may award 3 times the amount at which actual damages are assessed plus reasonable attorneys fees.

This bill would additionally authorize a service dealer, as defined, to bring a legal action pursuant to the above provisions.

Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 1793.03 of the Civil Code is amended to read:

1793.03.

(a) (1) Every manufacturer ~~making an express warranty with respect to~~ of an electronic or appliance product described in subdivision (h), (i), (j), or (k) of Section 9801 of the Business and Professions Code, with a wholesale price to the retailer of not less than fifty dollars ($50) and not more than ninety-nine dollars and ninety-nine cents ($99.99), shall make available to ~~service and repair facilities sufficient service literature and functional parts~~ owners of the product, service and repair facilities, and service dealers, sufficient service literature, at no charge, and functional parts and tools, inclusive of any updates, on fair and reasonable terms, to effect the diagnosis, maintenance, or repair of a product for at least three years after the date a product model or type was manufactured, regardless of whether the three-year period exceeds the warranty period for the product.

(2) For products with a wholesale price to the retailer of not less than fifty dollars ($50) and not more than ninety-nine dollars and ninety-nine cents ($99.99), that contains an electronic security lock or other security-related function, the manufacturer shall also make available to owners of the product, service and repair facilities, and service dealers, on fair and reasonable terms, any documentation, tools, software and parts needed to disable the lock or function, and to reset the lock or function when disabled, during the course of the inspection, diagnosis, maintenance, or repair of a product for at least three years after the date a product model or type was manufactured, regardless of whether the three-year period exceeds the warranty period for the product.

(b) (1) Every manufacturer ~~making an express warranty with respect to~~ of an electronic or appliance product described in subdivision (h), (i), (j), or (k) of Section 9801 of the Business and Professions Code, with a wholesale price to the retailer of one hundred dollars ($100) or more, shall make available to ~~service and repair facilities sufficient service literature and functional parts~~ owners of the product, service and repair facilities, and service dealers sufficient service literature, at no charge, and functional parts and tools, inclusive of any updates, on fair and reasonable terms, to effect the diagnosis, maintenance, or repair of a product for at least seven years after the date a product model or type was manufactured, regardless of whether the seven-year period exceeds the warranty period for the ~~product~~ product.

(2) For products with a wholesale price to the retailer of one hundred dollars ($100) or more, that contain an electronic security lock or other security-related function, the manufacturer shall also make available to owners of the product, service and repair facilities, and service dealers, on fair and reasonable terms, any documentation, tools, software and parts needed to disable the lock or function, and to reset the lock or function when disabled, during the course of the inspection, diagnosis, maintenance, or repair of a product for at least seven years after the date a product model or type was manufactured, regardless of whether the seven-year period exceeds the warranty period for the product.
(c) This section does not require a manufacturer to divulge a trade secret, except as may be necessary to provide service literature, documentation, tools, software, and parts on fair and reasonable terms.
(d) For purposes of this section, the following definitions apply:
(1) (A) “Fair and reasonable terms” means at costs and terms that are equivalent to the most favorable cost and terms under which the manufacturer offers the part, tool, or documentation to an authorized service dealer, or to itself, if it does not have authorized service dealers, accounting for any discount, rebate, convenient and timely means of delivery, means of enabling fully restored and updated functionality, rights of use, or other incentive or preference the manufacturer offers to an authorized service dealer, or any additional cost, burden, or impediment the manufacturer imposes on an owner or independent service and repair facility or independent service dealer.
(B) For documentation, including any relevant updates, “fair and reasonable terms” also means at no charge, except that, when the documentation is requested in physical printed form, a charge may be included for the reasonable actual costs of preparing and sending the copy.
(2) “Service dealers” has the same meaning as defined in Section 9801 of the Business and Professions Code.
(3) “Trade secret” has the same meaning as set forth in subdivision (d) of Section 3426.1, or paragraph (9) of subdivision (a) of Section 499c of the Penal Code.

SEC. 2.

Section 1794.1 of the Civil Code is amended to read:

1794.1.

(a) Any retail seller of consumer goods injured by the willful or repeated violation of the provisions of this chapter may bring an action for the recovery of damages. Judgment may be entered for three times the amount at which the actual damages are assessed plus reasonable attorney fees.

(b) Any independent ~~serviceman~~ serviceperson of consumer goods or service dealer, as defined in Section 9801 of the Business and Professions Code, injured by the willful or repeated violation of the provisions of this chapter may bring an action for the recovery of damages. Judgment may be entered for three times the amount at which the actual damages are assessed plus reasonable attorney fees.