| 1 | The Civil Justice Committee recommends the following: |
| 2 |
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| 3 | Council/Committee Substitute |
| 4 | Remove the entire bill and insert: |
| 5 | A bill to be entitled |
| 6 | An act relating to warranty associations; amending s. |
| 7 | 634.271, F.S.; providing an exemption from penalty |
| 8 | provisions for certain service warranties; providing |
| 9 | actual damages and costs for violations for which such |
| 10 | statutory penalties do not apply; providing retroactive |
| 11 | applicability; amending s. 634.401, F.S.; revising the |
| 12 | definition of "service warranty"; providing that certain |
| 13 | maintenance service contracts must be covered by a |
| 14 | specific contractual liability policy; providing an |
| 15 | effective date. |
| 16 |
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| 17 | Be It Enacted by the Legislature of the State of Florida: |
| 18 |
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| 19 | Section 1. Subsection (5) is added to section 634.271, |
| 20 | Florida Statutes, to read: |
| 21 | 634.271 Civil remedy.-- |
| 22 | (5) The penalty provisions in ss. 520.12 and 521.006, as |
| 23 | well as the statutory penalty in subsection (1), do not apply to |
| 24 | any violation of this part or chapters 520 and 521 relating to |
| 25 | or in connection with the sale or failure to disclose in a |
| 26 | retail installment contract or lease, prior to April 23, 2002, |
| 27 | of a vehicle protection product, or contract or agreement that |
| 28 | provides for payment of vehicle protection expenses, as defined |
| 29 | in s. 634.011(7)(b)1., so long as the sale of such product, |
| 30 | contract, or agreement was otherwise disclosed to the consumer |
| 31 | in writing at the time of the purchase or lease. However, in the |
| 32 | event of a violation for which such statutory penalties do not |
| 33 | apply, the court shall award actual damages and costs, including |
| 34 | a reasonable attorney's fee. Nothing in this subsection shall be |
| 35 | construed to require the application of the referenced statutory |
| 36 | penalty provisions where this subsection is not applicable. |
| 37 | Section 2. Subsection (13) of section 634.401, Florida |
| 38 | Statutes, is amended to read: |
| 39 | 634.401 Definitions.--As used in this part, the term: |
| 40 | (13) "Service warranty" means any warranty, guaranty, |
| 41 | extended warranty or extended guaranty, maintenance service |
| 42 | contract equal to or greater than 1 year in length or which does |
| 43 | not meet the exemption in paragraph (a), contract agreement, or |
| 44 | other written promise for a specific duration to perform the |
| 45 | repair, replacement, or maintenance of a consumer product or for |
| 46 | indemnification for repair, replacement, or maintenance, for the |
| 47 | operational or structural failure due to a defect in materials |
| 48 | or workmanship, normal wear and tear, power surge, or accidental |
| 49 | damage from handling to indemnify against the cost of repair or |
| 50 | replacement of a consumer product in return for the payment of a |
| 51 | segregated charge by the consumer; however: |
| 52 | (a) Maintenance service contracts written for less than 1 |
| 53 | year or less which do not contain provisions for indemnification |
| 54 | and which do not provide a discount to the consumer for any |
| 55 | combination of parts and labor in excess of 20 percent during |
| 56 | the effective period of such contract, motor vehicle service |
| 57 | agreements, transactions exempt under s. 624.125, and home |
| 58 | warranties subject to regulation under parts I and II of this |
| 59 | chapter are excluded from this definition; and |
| 60 | (b) The term "service warranty" does not include service |
| 61 | contracts between consumers and condominium associations. |
| 62 | Section 3. All maintenance service contracts that include |
| 63 | coverage for accidental damage from handling must be covered by |
| 64 | the contractual liability policy referenced in s. 634.406(3), |
| 65 | Florida Statutes. |
| 66 | Section 4. This act shall take effect upon becoming a law, |
| 67 | and the creation of subsection (5) of section 634.271, Florida |
| 68 | Statutes, by this act shall apply retroactively to January 1, |
| 69 | 1998. |