H-3145.2  _______________________________________________

                          HOUSE BILL 2886

          _______________________________________________

State of Washington      56th Legislature     2000 Regular Session

By Representatives Barlean, Keiser, Benson and Hatfield

Read first time 01/24/2000.  Referred to Committee on Financial Institutions & Insurance.

Exempting certain service contracts from regulation.

    AN ACT Relating to service contracts; and amending RCW 48.110.015.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

    Sec. 1.  RCW 48.110.015 and 1999 c 112 s 2 are each amended to read as follows:

    (1) The following are exempt from this title:

    (a) Warranties;

    (b) Maintenance agreements; and

    (c) Service contracts on tangible property which when new either:

    (i) Has a manufacturer's suggested retail price or an actual sales price of fifteen thousand dollars or more, exclusive of sales tax; or

(ii)(A) Is paid for with separate and additional consideration;

    (((ii))) (B) Is issued at the point of sale, or within sixty days of the original purchase date of the property; and

    (((iii) On tangible property when the tangible property for which the service contract is sold)) (C) Has a purchase price of fifty dollars or less, exclusive of sales tax.

    (2) This chapter does not apply to:

    (a) Vehicle service contracts which are governed under chapter 48.96 RCW; and

    (b) Vehicle mechanical breakdown insurance.

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