Bill Caption

Relating to certain vehicle protection products.

Fiscal Notes

From the Legislative Budget Board: no significant fiscal implication to the state is anticipated.

Bill Analysis

SB 1500 would make it a deceptive act for a warrantor of a vehicle protection product warranty to use a name that includes “casualty,” “surety,” “insurance,” “mutual,” or any other word descriptive of insurance. Also, a retailer would be prohibited from requiring as a condition of a retail installment transaction or the cash sale of a motor vehicle, including commercial, that the buyer purchase a vehicle protection product that is not installed on the vehicle at the time of the transaction. Finally, the Vehicle Protection Product Warrantor Advisory Board and warrantor registration requirements and regulations would be abolished.

Vote Recommendation Notes

This bill enhances our free market and limited government principles by abolishing registration and regulations on warrantors making it easier to earn a living. We do note, however, that the provision prohibiting a retailer from requiring a buyer to purchase a vehicle protection product not already installed on the vehicle is not a stipulation the government should make concerning a private transaction between a willing buyer and seller.

On the whole, this bill in our view is a reduction in government regulations and therefore we support SB 1500 but recommend amending it to strike lines 49-61 on page four of hte bill.