Relating to the regulation of a residential service contract. 

This bill would modify the portion of the code pertaining to the Residential Service Company Act. Under current law, this chapter has a non-applicability to certain persons. If this bill passes, a person who sells a service contract for repair, replacement, or maintenance caused by defective materials, or by normal ware would be exempt from this chapter. However, the contract may not provide benefits with respect to structural components, or an electrical or plumbing system of a residential property. This bill specifies that a residential service contract that pertains only to an appliance of heating, cooling, or air-conditioning system of a residential property may be offered under this chapter without having to comply with the rules for service contract providers and administrators.

This makes largely technical and procedural changes to conform law to existing practices and has no direct connection to our principles. Therefore, we remain neutral.