This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1203z.DOCX
DATE: 5/1/2023
HOUSE OF REPRESENTATIVES STAFF FINAL BILL ANALYSIS
BILL #: CS/HB 1203 Registrations and Transfers of Heating, Ventilation, and Air-Conditioning System
Manufacturer Warranties
SPONSOR(S): Regulatory Reform & Economic Development Subcommittee, Maggard and others
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1242
FINAL HOUSE FLOOR ACTION: 116 Y’s
0 N’s GOVERNOR’S ACTION: Pending
SUMMARY ANALYSIS
CS/HB 1203 passed the House on April 20, 2023, and subsequently passed the Senate on May 1, 2023.
Generally, manufacturers provide a warranty for a Heating, Ventilation, and Air Conditioning (HVAC) system
for 5 to 10 years. The manufacturer warranty covers parts that might fail such as the air compressor or furnace
heat exchanger. The manufacturer will replace or repair any parts at no cost if the parts are covered under the
warranty. If a residential real property is sold to another person, the warranty time may be cut short or may not
be transferable to the new owner. In Florida, most manufacturer warranties are tied to a person instead of the
property. The HVAC manufacturer warranty is tied to the original owner and does not transfer when the
property is sold unless the previous owner transfers it to a new owner if that is an option under the warranty.
The bill:
Provides that regardless of ownership, an HVAC manufacturer’s warranty runs with the property.
Provides that an HVAC warrantor continues to be obligated under the terms of the warranty regardless of
the property owner and may not charge a transfer fee.
Provides that the transfer of an HVAC manufacturer warranty does not make the existing warranty term
longer.
Provides that such warranties are deemed registered if a licensed contractor meets certain requirements.
Provides that a licensed contractor who installs a new HVAC system must document the installation
through an invoice or receipt to the customer.
The bill does not appear to have a fiscal impact on local or state governments.
Subject to the Governor’s veto powers, the effective date of this bill is July 1, 2023.
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DATE: 5/1/2023
I. SUBSTANTIVE INFORMATION
A. EFFECT OF CHANGES:
Warranty Background
A warranty is an assurance that a manufacturer or seller makes about the condition of its product.
1
A
warranty means that a manufacturer or seller will replace or repair the product under certain instances.
A warranty can be either express or implied.
2
An express warranty is a verbal or written assurance for the product.
3
On the other hand, an implied
warranty is an unstated assurance that the product is made for its intended purpose.
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An implied
warranty is in addition to an express warranty. However, an implied warranty may be negated or limited
by an express warranty. There is no implied warranty if a seller states that the product is “as is”, “with
all faults”, or similar language.
5
Manufacturer Warranties
A manufacturer warranty attaches to the purchase of the product by the manufacturer. A manufacturer
warranty is considered a limited warranty because the warranty is only valid for a certain time period
after the purchase. These terms and conditions are created by the manufacturer. Once the period of
coverage is over, someone can purchase an extended warranty under different coverage terms to
extend the protection of the product beyond the terms and conditions laid out in the manufacturer
warranty.
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Magnuson-Moss Warranty Act
The Magnuson-Moss Warranty Act (MMWA)
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is a federal law that governs consumer product
warranties. Passed in 1975, the Act requires manufacturers and sellers of consumer products to
provide consumers with detailed information about warranty coverage before and after the sale of the
warranted product.
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The MMWA defines three kinds of consumers:
a buyer of any consumer product;
any person to whom such product is transferred during the duration of an implied or express
warranty applicable to the product;
any other person who is entitled by the terms of such warranty or under applicable State law to
enforce the obligations of the warranty.
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Manufacturer Warranties for HVAC Systems- Current Situation
1
Will Kenton, Warranty Definition, Types, Example, and How It Works, Investopedia, Nov. 24, 2022,
https://www.investopedia.com/terms/w/warranty.asp (last visited March 11, 2023).
2
45 Fla. Jur 2d Sales and Exchanges of Goods § 156.
3
“An express warranty is created by an affirmation of fact or promise made by the seller to the buyer that relates to the goods, by any
description of the goods that is made part of the basis of the bargain, or by any sample or model that is made part of the basis of the
bargain.” S. 672.313, F.S.
4
S. 672.314, F.S.
5
S. 672.316, F.S.
6
Tom Scott, Extended Warranties vs. Manufacturer Warranties: What's the Difference?, Fortegra, July 9, 2019,
https://blog.fortegra.com/extended-warranties-vs.-manufacturer-warranties-whats-the-difference (last visited March 11, 2023).
7
15 U.S.C. §§ 2301-2312 (1975).
8
MMWA does not apply if a seller or manufacturer does not provide a warranty on their product. Jason Gordon, Magnuson Moss
Warranty Act – Explained, The Business Professor, Sept. 26, 2021, https://thebusinessprofessor.com/en_US/consumer-law/magnuson-
moss-warranty-act (last visited March 12, 2023).
9
O'Connor v. BMW of N. Am., LLC, 905 So. 2d 235, 236–37 (Fla. 2d DCA 2005); see also, § 2310(d) of MMMWA provides that, “a
consumer who is damaged by the failure of a supplier, warrantor, or service contractor to comply with any obligation under this title, or
under a written warranty, implied warranty, or service contract, may bring suit for damages…”
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Florida
Most manufacturers require that an HVAC contractor purchase and install the HVAC system before the
consumer can register the HVAC system for the limited manufacturer warranty. Generally, manufacturers
provide a warranty for the HVAC system for 5 to 10 years. The warranty covers parts that might fail such as
the air compressor or furnace heat exchanger. The manufacturer will replace or repair any parts at no cost
if the parts are covered under the warranty.
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The following are some examples of leading HVAC
manufacturers and their warranty terms:
Goodman air conditioner warranty: 10-year unit replacement limited warranty, lifetime compressor
limited warranty on select models.
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Carrier air conditioner warranty: 10-year parts limited warranty on Infinity, Performance, and
Comfort series models with Puron refrigerant.
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Lennox air conditioner warranty: 10-year limited parts and compressor warranty for Dave Lennox
Signature® Collection Series models; 5-year limited parts warranty, 10-year compressor.
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Trane air conditioner warranty: 1 to 20-year base limited warranty that covers compressor, outdoor
coil, and internal functioning components.
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Bryant air conditioner warranty: 10-year standard parts limited warranty if registered within 90 days
of purchase; 5-year standard parts limited warranty if not registered.
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Amana air conditioner warranty: Lifetime limited warranty for compressor, lifetime unit replacement
limited warranty, 10-year parts limited warranty, varies by model.
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If a building or house that contains an HVAC system with a manufacturer warranty is sold to another
person, the warranty time may be cut short or may not transfer to the new owner. The assignment of the
HVAC warranty to the new owner is contingent upon the terms and conditions for the warranty.
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In Florida,
most manufacturer warranties are tied to a person instead of the property. Usually, the manufacturer
warranty is tied to the original owner and does not transfer when the property is sold unless the previous
owner transfers it to the new owner if that is an option in the warranty. Below are some typical transfer
policies:
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Manufacturer Transfer Policy
Carrier
Must register within 90 days of the property sale.
HVAC must stay in same location.
Subsequent owner will have access to limited warranty with 5-year parts and compressor
coverage.
Maytag
Can transfer a warranty from the original owner to subsequent owner.
Subsequent owner can access an “unregistered warranty” for 5-year parts and
compressor coverage and 20-year heat exchanger coverage.
10
Bryan Carnahan, HVAC Warranties and You: What Are They, and Why Should You Register Your Product?, Fire & Ice Heating and
Air Conditioning, Inc., July 1, 2022, https://indoortemp.com/resources/hvac-warranties-and-product-registration (last visited March 12,
2023).
11
The Air Conditioner Limited Warranty- The Why, When & How?, Goodman, https://www.goodmanmfg.com/resources/hvac-learning-
center/warranty (last visited May 1, 2023).
12
Comfort™ Series Air Conditioners, Thompson Heating & Cooling Inc., Carrier Corporation, https://trustthompson.com/wp-
content/uploads/2020/10/comfort13brochure.pdf, pp. 2-3 (last visited May 1, 2023).
13
What Products Are Covered under Warranty?, Lennox, https://www.lennox.com/help/faqs/products-under-warranty (last visited May
1, 2023).
14
What Do Trane Warranties Cover?, Arcadia HVAC, June 4, 2019, https://www.arcadiahvac.com/blog/what-do-trane-warranties-cover
(last visited May 1, 2023).
15
Warranty Information, Bryant, https://www.bryant.com/en/us/current-owners/warranty-information/ (last visited May 1, 2023).
16
“Get Peace of Mind with an Air Conditioner Limited Warranty.” Amana, https://www.amana-hac.com/resources/hvac-learning-
center/limited-warranty/get-peace-of-mind-with-an-air-conditioner-limited-warranty (last visited May 1, 2023).
17
Ralph Desmornes, Does My Air Conditioner Have a Warranty?, HVAC, July 26, 2022, https://www.hvac.com/air-conditioners/does-
my-air-conditioner-have-a-warranty/ (last visited March 12, 2023).
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Bry'Ana Arvie, Will HVAC Warranties Automatically Transfer over to New Homeowners?, Angi, Aug. 10, 2021,
https://www.angi.com/articles/do-hvac-warranties-transfer-homeowners.htm (visited March 12, 2023).
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Subsequent owners cannot access the entire coverage period that the original owner had
for the registered warranty.
Trane
Warranty stays with the HVAC unit regardless of original or subsequent ownership.
Subsequent owner gets access to the remaining warranty coverage period of the original
owner’s limited warranty with the manufacturer, but the subsequent owner must register
the unit with Trane and pay a transfer fee.
Other States
States differ in their approach on the transferability of warranties to a subsequent owner. In Louisiana and
Texas, warranties automatically transfer the remaining coverage of the original owner, without any cost, to
the subsequent owner of the property.
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In Alaska, if the lessor has a warranty on personal property and
the terms of the warranty permit transfer, the lessor may transfer the warranty to the new person who
acquired ownership.
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Generally, states allow the terms and conditions of the warranty to control whether
the remaining coverage is transferable to a subsequent owner.
Manufacturer Warranties for HVAC Systems- Effect of the Bill
The bill makes the manufacturer warranty for an HVAC system run with the property instead of the person.
The bill provides that:
a manufacturer’s warranty for an HVAC system is attached to the residential property, not the
original owner;
once a new owner purchases a residential property, the remaining manufacturer warranty coverage
for an HVAC system is instantly transferred to the new owner;
a manufacturer continues to be obligated under the terms of a manufacturer’s warranty agreement
for a warranty that is transferred and may not charge a fee for the transfer of the warranty;
the transfer of a manufacturer warranty not make the existing warranty term longer;
a manufacturer’s warranty of an HVAC system is deemed registered with the manufacturer if a
contractor licensed under part I of chapter 489:
o installs the new HVAC system; and
o provides the manufacturer of the HVAC system with the date of the issuance of the
certificate of occupancy
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for installations relating to new construction, or the serial number
of the HVAC system for installations relating to existing construction, as applicable.
the contractor licensed under part I of chapter 489 who installs a new HVAC system must
document the installation through an invoice or receipt to the customer.
Overall, the bill allows a homeowner to be discharged from the responsibility of registering a new HVAC
system for a manufacturer warranty and the responsibility of transferring the remaining warranty
coverage for the HVAC system to a new owner.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
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La. Stat. § 9:3148; TX BUS & COM § 608.002(a)-(b) which states the following:
(a) If residential real property that includes an air conditioning system as a fixture to the property is conveyed to a new owner, a
manufacturer's warranty in effect on that system or a component of that system on the date of the conveyance:
(1) is automatically transferred to the new owner; and
(2) continues in effect as if the new owner was the original purchaser of the system or component, as applicable.
(b) A warrantor continues to be obligated under the terms of a manufacturer's warranty agreement for a warranty transferred under this
section and may not charge a fee for the transfer of the warranty.
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Alaska Stat. Ann. § 45.35.020.
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Under the Florida Building Code, a building or structure is not allowed to be used, occupied, or to be changed from its existing use or
occupancy until a building official has issued certificate of occupancy. After a building official conducts an inspection of a building or a
structure and finds no violations with applicable law, a building official issues a certificate of occupancy. Ss. 111.1 and 111.2 of the
Florida Building Code, Seventh edition.
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A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
There would be a positive economic impact for property owners and subsequent property owners as
they will enjoy the remaining manufacturer warranty coverage for their HVAC system without having to
file additional paperwork. This means that if they have a faulty HVAC part that is covered under the
warranty, then there will be no cost to repair that part.
There will likely be a positive economic impact on HVAC contractor industry professionals because
consumers will be more likely to hire them to repair their HVAC system when the costs of the parts
would be covered under the warranty and the consumers would only pay for cost of the labor.
It is unclear whether manufacturers will increase product costs based on any increase in payouts on
warranties.
D. FISCAL COMMENTS:
None.