Under existing law, service contract providers, who administer or sell contracts to cover the repair, maintenance, or replacement of a purchased good, are required to register with the Commissioner of Insurance and their registration fees are paid into the State Treasury to the credit of the Service Contract Revolving Fund. This bill would require all service contract provider registration fees to be paid into the State Treasury to the credit of the Special Examination Revolving Fund. This bill would clarify that any adjustment in the service contract provider registration fee is in accordance with changes in the Consumer Price Index under existing law. This bill would also require any unencumbered and unexpended balance remaining in the Service Contract Revolving Fund to be transferred to the credit of the Special Examination Revolving Fund.

Statutes affected:
Introduced: 8-32-3, 8-32-1, 8-32-5