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HB0064 • 2022

Vehicle service contracts.

AN ACT relating to the insurance code; amending the scope of service contracts; specifying that theft protection program warranties are not insurance; specifying that theft protection programs and theft protection program warranties are not service contracts; amending and creating definitions; and providing for an effective date.

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Representative Brown
Last action
2022-03-15
Official status
enrolled
Effective date
7/1/2022

Plain English Breakdown

The summary provided by the candidate explanation includes some details that are not explicitly supported in the official bill text or summary.

Vehicle Service Contracts

This law changes parts of the insurance code to define and regulate vehicle service contracts, theft protection programs, and their warranties.

What This Bill Does

  • Amends the definition of 'service contract' to include replacement of a motor vehicle key or key fob that becomes inoperable, lost, or stolen.
  • Defines 'theft protection program' as devices or systems installed on cars to prevent theft or help find stolen vehicles.
  • Specifies that theft protection programs and their warranties are not considered insurance or service contracts under the law.

Who It Names or Affects

  • People who buy vehicle service contracts or theft protection systems
  • Companies that sell these products

Terms To Know

Service contract
A deal where a company agrees to fix, replace, or maintain your car parts for a fee.
Theft protection program
A device or system put on cars to prevent theft or help find stolen vehicles.

Limits and Unknowns

  • Does not specify how much the changes will affect current service contracts.
  • Does not explain what happens if a theft protection program fails and causes damage.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HB0064HS001

Standing Committee • House Transportation, Highways and Military Affair

Adopted

Plain English: The amendment modifies definitions in the bill by adding new categories for 'theft protection programs' and their warranties, which are not considered insurance or service contracts.

  • Adds a definition of 'theft protection program', including devices like alarm systems, body part marking products, steering locks, window etch products, pedal or ignition locks, fuel or ignition kill switches, and electronic tracking devices.
  • Defines 'theft protection program warranty' as a written agreement that covers incidental payments if the theft protection program fails to prevent vehicle theft.
  • The amendment does not specify how these changes will be enforced or regulated beyond defining them.
HB0064SS001

Standing Committee • Senate Transportation, Highways and Military Affai

Adopted

Plain English: The amendment changes references to 'warrantees' to 'warranties', removes certain sections related to theft protection program payment, and adds new language about enforcement provisions for theft protection programs and their warranties.

  • Replaces all instances of the word 'warrantees' with 'warranties'.
  • Adds a new clause specifying that theft protection programs and their warranties are subject to certain enforcement provisions under Wyoming Statute 26-49-110.
  • Removes references to incidental payments for theft protection program expenses.
  • The amendment text does not provide full context, so the exact impact of these changes on existing laws and regulations is unclear without further analysis.

Bill History

  1. 2022-03-15 LSO

    Assigned Chapter Number 87

  2. 2022-03-15 Governor

    Governor Signed HEA No. 0055

  3. 2022-03-11 Senate

    S President Signed HEA No. 0055

  4. 2022-03-11 House

    H Speaker Signed HEA No. 0055

  5. 2022-03-10 LSO

    Assigned Number HEA No. 0055

  6. 2022-03-10 House

    H Concur:Passed 53-6-1-0-0

  7. 2022-03-10 House

    H Received for Concurrence

  8. 2022-03-10 Senate

    S 3rd Reading:Passed 28-1-1-0-0

  9. 2022-03-09 Senate

    S 2nd Reading:Passed

  10. 2022-03-08 Senate

    S COW:Passed

  11. 2022-03-08 Senate

    S Placed on General File

  12. 2022-03-08 Senate

    S08 - Transportation:Recommend Amend and Do Pass 5-0-0-0-0

  13. 2022-03-02 Senate

    S Introduced and Referred to S08 - Transportation

  14. 2022-03-02 Senate

    S Received for Introduction

  15. 2022-03-01 House

    H 3rd Reading:Passed 54-5-1-0-0

  16. 2022-02-28 House

    H 2nd Reading:Passed

  17. 2022-02-25 House

    H COW:Passed

  18. 2022-02-24 House

    H Placed on General File

  19. 2022-02-24 House

    H08 - Transportation:Recommend Amend and Do Pass 9-0-0-0-0

  20. 2022-02-18 House

    H Introduced and Referred to H08 - Transportation 59-1-0-0-0

  21. 2022-02-11 House

    H Received for Introduction

  22. 2022-02-04 LSO

    Bill Number Assigned

Official Summary Text

Bill Summary - 22LSO-0317
Bill No.:

HB0064

Effective:

7/1/2022 12:00:00 AM

LSO No.:

22LSO-0317

Enrolled Act No.:

HEA No. 0055

Chapter No.:

87

Prime Sponsor:

Brown

Catch Title:

Vehicle service contracts.

Subject:

Amending the insurance code to address the scope of vehicle service contracts and theft protection programs and warranties.

Summary/Major Elements:

This act amends the scope of service contracts to include several additional possible functions, such as replacement of a motor vehicle key or key fob and repair, replacement, or maintenance due to road hazards.

The act defines theft protection programs, theft protection program warranties, and incidental theft protection program payments, specifies that they are not insurance, and describes how they relate to service contracts.

Comments:

Amends a major
program:
amends the Insurance Code regarding service contracts and theft protection programs and warranties.
The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent.

While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill.

Current Bill Text

Read the full stored bill text
22LSO-0317

ORIGINAL House

ENGROSSED
Bill No
.
HB0064

ENROLLED ACT NO. 55,

HOUSE OF REPRESENTATIVES

SIXTY-SIXTH LEGISLATURE OF THE STATE OF WYOMING
2022 Budget Session

AN ACT relating to the insurance code; amending the scope of service contracts; specifying that theft protection program warranties are not insurance; specifying that theft protection programs and theft protection program warranties are not service contracts; amending and creating definitions; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.

W.S. 26
‑
1
‑
104(a) by creating a new paragraph (viii), 26
‑
49
‑
101(d)(ii) and by creating a new paragraph (iv) and 26
‑
49
‑
102(a)(ix)(B), (C), by creating new subparagraphs (E) and (F) and by creating new paragraphs (xii) through (xv) are amended to read:

26
‑
1
‑
104.

Applicability of provisions.

(a)

This code does not apply to:

(viii)

Theft protection program warranties, except as referred to in chapter 49 of this code.

Theft protection program warranties shall not be considered insurance.

26
‑
49
‑
101.

Scope and purposes.

(d)

This article does not apply to:

(ii)

To mechanical breakdown insurance organizations who maintain a license pursuant to W.S. 26
‑
37
‑
106;
or

(iv)

Theft protection programs or their accompanying warranties except that theft protection
programs and their accompanying warranties shall be subject to the enforcement provisions of W.S. 26
‑
49
‑
110.

26
‑
49
‑
102.

Definitions.

(a)

As used in this article:

(ix)

"Service contract" means a contract or agreement for a separately stated consideration for a specific duration to perform the repair, replacement or maintenance of property or indemnification for repair, replacement or maintenance, for the operational or structural failure due to a defect in materials or workmanship or normal wear and tear, with or without additional provision for incidental payment or indemnity under limited circumstances, including, but not limited to, towing, rental and emergency road service. Service contracts may provide for the repair, replacement or maintenance of property for damage resulting from power surges and accidental damage from handling. "Service contract" also includes a contract or agreement for one (1) or more of the following:

(B)

The repair or replacement of tires or wheels damaged as a result of coming into contact with ordinary road hazards
.

including, but not limited to, potholes, curbs, rocks, wood debris, metal parts, glass, plastic or composite scraps.
A contract or agreement meeting the definition set forth in this subparagraph in which the party obligated to perform is either a tire or wheel manufacturer or a motor vehicle manufacturer is exempt from the requirements of this chapter;

(C)

The repair of small windshield chips or cracks
but which expressly excludes
in or
the replacement
of the entire windshield
as a result of damage caused by road hazards
;

(E)

The replacement of a motor vehicle key or key fob in the event that the key or key fob becomes inoperable, lost or stolen;

(F)

In conjunction with a motor vehicle leased for use, the repair, replacement or maintenance of property or indemnification for repair, replacement or maintenance due to excess wear and use, damage to items such as tires, paint cracks or chips, interior stains, rips or scratches, exterior dents or scratches, windshield cracks or chips, missing interior or exterior parts or excess mileage that result in a lease
‑
end charge, or any other charge for damage that is deemed as excess wear and use by a lessor under a motor vehicle lease, provided that any repair, replacement, maintenance or indemnification shall not exceed the purchase price of the vehicle.

(xii)

"Incidental theft protection program payment" means expenses specified in a theft protection program warranty that are incurred by the warranty holder due to the failure of the warranty holder's theft protection program to perform as provided in the theft protection program warranty. Incidental theft protection program payments may include insurance policy deductibles, rental vehicle charges, the difference between the actual value of the stolen vehicle at the time of theft and the cost of a replacement vehicle, sales taxes, registration fees, transaction fees and mechanical inspection fees. Incidental theft protection program payments may be reimbursements in either a fixed amount specified in the theft protection program warranty or by use of a formula
itemizing specific incidental theft protection program payments that may be due to the warranty holder;

(xiii)

"Road hazard" means a hazard that is encountered while driving a motor vehicle and that may include, but is not limited to, potholes, rocks, wood debris, metal parts, glass, plastic, curbs or composite scraps;

(xiv)

"Theft protection program" means a device or system that:

(A)

Is installed on or applied to a motor vehicle and designed to prevent the theft of the vehicle or, if the vehicle is stolen, aid in the recovery of the vehicle;

(B)

Includes a theft protection program warranty;

(C)

May include but is not limited to:

(I)

An alarm system;

(II)

A body part marking product;

(III)

A steering lock;

(IV)

A window etch product;

(V)

A pedal or ignition lock;

(VI)

A fuel or ignition kill switch;

(VII)

An electronic, radio or satellite tracking device.

(xv)

"Theft protection program warranty" means a written agreement by a warrantor that provides if the theft protection program fails to prevent loss or damage to a motor vehicle from theft, the warrantor will pay to or on behalf of the warranty holder specified incidental theft protection program payments as a result of the failure of the theft protection program to perform pursuant to the terms of the theft protection program warranty.

Section 2
.

This act is effective July 1, 2022
.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the House.

Chief Clerk

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