The Service Contract Act would only allow companies with $100 million in net worth to offer service contracts and extended warranties.
Illinois lawmakers threw a curve ball at the plumbing industry when a bill unanimously sailed through the House that would limit the traditional service repair role of the contractor, effectively knocking off small businesses. The Service Contract Act, which is awaiting Senate approval, would only allow companies with $100 million in net worth to offer service contracts and extended warranties.
“We’re not too pleased with this piece of legislation,” said Bev Potts, education and regulatory affairs coordinator for the Illinois PHCC. “It is a piece of legislation that is very much in concert with what the utilities and large retailer merchants have been trying to do for the last several years.”