Senate Bill 2514

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    Florida Senate - 2000                                  SB 2514

    By Senator Forman





    32-1257-00

  1                      A bill to be entitled

  2         An act relating to medical equipment; amending

  3         s. 400.295, F.S.; defining the terms

  4         "collateral costs," "nonconformity," and

  5         "warranty rights period"; creating s. 400.936,

  6         F.S.; providing for warranties and equipment

  7         repairs; providing for notice of consumer's

  8         rights; amending s. 427.802, F.S.; redefining

  9         the terms "assistive technology devices" and

10         "assistive technology device dealer"; amending

11         s. 427.803, F.S.; revising the duties of

12         assistive technology device dealers and

13         manufacturers; amending s. 427.8041, F.S.;

14         eliminating a fee; providing an effective date.

15

16  Be It Enacted by the Legislature of the State of Florida:

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18         Section 1.  Section 400.925, Florida Statutes, is

19  amended to read:

20         400.925  Definitions.--As used in this part, the term:

21         (1)  "Accrediting organizations" means the Joint

22  Commission on Accreditation of Healthcare Organizations or

23  other national accreditation agencies whose standards for

24  accreditation are comparable to those required by this part

25  for licensure.

26         (2)  "Affiliated person" means any person who directly

27  or indirectly manages, controls, or oversees the operation of

28  a corporation or other business entity that is a licensee,

29  regardless of whether such person is a partner, shareholder,

30  owner, officer, director, agent, or employee of the entity.

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  1         (3)  "Agency" means the Agency for Health Care

  2  Administration.

  3         (4)  "Applicant" means an individual applicant in the

  4  case of a sole proprietorship, or any officer, director,

  5  agent, managing employee, general manager, or affiliated

  6  person, or any partner or shareholder having an ownership

  7  interest equal to 5 percent or greater in the corporation,

  8  partnership, or other business entity.

  9         (5)  "Collateral costs" means expenses incurred by a

10  consumer in connection with the repair of a nonconformity,

11  including the costs of obtaining an alternative home medical

12  equipment device.

13         (6)(5)  "Consumer" or "patient" means any person who

14  uses home medical equipment in his or her place of residence.

15         (7)(6)  "Department" means the Department of Children

16  and Family Services.

17         (8)(7)  "General manager" means the individual who has

18  the general administrative charge of the premises of a

19  licensed home medical equipment provider.

20         (9)(8)  "Home medical equipment" includes any product

21  as defined by the Federal Drug Administration's Drugs, Devices

22  and Cosmetics Act, any products reimbursed under the Medicare

23  Part B Durable Medical Equipment benefits, or any products

24  reimbursed under the Florida Medicaid durable medical

25  equipment program. Home medical equipment includes, but is not

26  limited to, oxygen and related respiratory equipment. Home

27  medical equipment includes customized wheelchairs and related

28  seating and positioning, but does not include prosthetics or

29  orthotics or any splints, braces, or aids custom fabricated by

30  a licensed health care practitioner.

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    Florida Senate - 2000                                  SB 2514
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  1         (10)(9)  "Home medical equipment provider" means any

  2  person or entity that sells or rents or offers to sell or rent

  3  to or for a consumer:

  4         (a)  Any home medical equipment and services; or

  5         (b)  Home medical equipment that requires any home

  6  medical equipment services.

  7         (11)(10)  "Home medical equipment provider personnel"

  8  means persons who are employed by or under contract with a

  9  home medical equipment provider.

10         (12)(11)  "Home medical equipment services" means

11  equipment management and consumer instruction, including

12  selection, delivery, setup, and maintenance of equipment, and

13  other related services for the use of home medical equipment

14  in the consumer's regular or temporary place of residence.

15         (13)(12)  "Licensee" means the person or entity to whom

16  a license to operate as a home medical equipment provider is

17  issued by the agency.

18         (14)(13)  "Moratorium" means a mandated temporary

19  cessation or suspension of the sale, rental, or offering of

20  equipment after the imposition of the moratorium. Services

21  related to equipment sold or rented prior to the moratorium

22  must be continued without interruption, unless deemed

23  otherwise by the agency.

24         (15)  "Nonconformity" means a condition or defect of a

25  home medical equipment device which substantially impairs the

26  use, value, or safety of the device and which is covered by an

27  express warranty applicable to the home medical equipment

28  device, but does not include a condition or defect that is the

29  result of abuse, neglect, or unauthorized modification or

30  alteration of the home medical equipment device by a consumer.

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  1         (16)(14)  "Person" means any individual, firm,

  2  partnership, corporation, or association.

  3         (17)(15)  "Premises" means those buildings and

  4  equipment which are located at the address of the licensed

  5  home medical equipment provider for the provision of home

  6  medical equipment services, which are in such reasonable

  7  proximity as to appear to the public to be a single provider

  8  location, and which comply with zoning ordinances.

  9         (18)(16)  "Residence" means the consumer's home or

10  place of residence, which may include nursing homes, assisted

11  living facilities, transitional living facilities, adult

12  family-care homes, or other congregate residential facilities.

13         (19)  "Warranty rights period" means the period ending

14  1 year after first delivery of the home medical equipment

15  device to the consumer or the manufacturer's express written

16  warranty, whichever is longer.

17         Section 2.  Section 400.936, Florida Statutes, is

18  created to read:

19         400.936  Warranties; repairs; consumer's rights.--

20         (1)  A manufacturer that sells new equipment to a

21  consumer, either directly or through a home medical equipment

22  provider, shall furnish the consumer with an express warranty

23  for the equipment.  The duration of the express warranty must

24  be for at least 1 year after first delivery of the equipment

25  to the consumer unless the manufacturer's warranty is longer.

26  In the absence of an express warranty from the manufacturer,

27  the manufacturer is considered to have expressly warranted to

28  the consumer of home medical equipment that, for a period of 1

29  year after the date of first delivery to the consumer, the

30  equipment will be free from any condition or defect that

31  substantially impairs the value of the equipment to the

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  1  consumer. This paragraph does not apply to nonequipment items

  2  that are disposable or consumable supplies.

  3         (2)  If any home medical equipment does not conform to

  4  the warranty and the consumer first reports the problem to the

  5  manufacturer during the warranty rights period, the

  6  manufacturer shall make repairs necessary to conform the

  7  equipment to the warranty, irrespective of whether the repairs

  8  are made after the expiration of the warranty rights period.

  9  The repairs will be at no cost to the consumer if reported to

10  the provider or manufacturer during the warranty rights

11  period. This subsection may not be construed to grant an

12  extension of the warranty rights period or to expand the time

13  within which a consumer must file a complaint under this part.

14         (3)  If any new home medical equipment does not conform

15  to an applicable express warranty and the consumer reports the

16  nonconformity to the manufacturer or the provider and makes

17  the equipment available for repair within 1 year after first

18  delivery or return of the equipment to the consumer, the

19  nonconformity must be repaired at no charge to the consumer.

20         (4)  If, after a reasonable attempt to repair, the

21  nonconformity is not repaired, the manufacturer, at the

22  direction of the consumer, must do one of the following:

23         (a)  Accept return of the equipment and replace the

24  equipment with comparable new equipment and refund any

25  collateral costs.

26         (b)  Accept return of the equipment and refund to the

27  consumer and to any holder of a perfected security interest in

28  the consumer's equipment, as the interest may appear, the full

29  purchase price plus any finance charge amount paid by the

30  consumer at the point of sale, and collateral costs.

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  1         (5)  To receive comparable home medical equipment or a

  2  refund due under paragraph (4)(a), a consumer must offer to

  3  transfer possession of the equipment having the nonconformity

  4  to the manufacturer.  No later than 30 days after the offer,

  5  the manufacturer shall provide the consumer with the

  6  comparable equipment or refund.  When the manufacturer

  7  provides the comparable equipment or refund, the consumer

  8  shall return the equipment having the nonconformity to the

  9  manufacturer, along with any endorsements necessary to

10  transfer real possession to the manufacturer.

11         (6)  To receive a refund due under paragraph (4)(b), a

12  consumer must offer to return the equipment having the

13  nonconformity to its manufacturer.  No later than 30 days

14  after the offer, the manufacturer shall provide the refund to

15  the consumer.  When the manufacturer provides the refund, the

16  consumer shall return to the manufacturer the equipment having

17  the nonconformity.

18         (7)(a)  A home medical equipment provider shall furnish

19  to consumers, at the time of acquisition or lease, a written

20  statement prepared by the agency that explains the consumer's

21  rights under this part. The statement shall include the

22  consumer toll-free number for the agency, 888-419-3456.

23  Consumers should contact the provider with complaints

24  regarding any equipment and services and any equipment

25  warranty issues. If the provider and consumer are unable to

26  resolve the complaint issues together, the consumer should

27  contact the agency's toll-free number to report the complaint.

28  The consumer's signed acknowledgement of receipt of materials

29  required under this part constitutes prima facie evidence of

30  compliance by the provider and manufacturer. The

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  1  acknowledgement must be a part of the consumer's record for 5

  2  years.

  3         (b)  A provider or manufacturer shall provide to the

  4  consumer, each time the consumer's home medical equipment is

  5  returned after being examined or repaired under the warranty,

  6  a legible statement of any diagnosis, a description of all

  7  work performed, and a list of any parts replaced or repaired.

  8         Section 3.  Subsections (1) and (4) of section 427.802,

  9  Florida Statutes, are amended to read:

10         427.802  Definitions.--As used in this part:

11         (1)  "Assistive technology devices" means computer or

12  electrical devices that enable persons with disabilities to

13  provide voice input or receive voice output manual

14  wheelchairs, motorized wheelchairs, motorized scooters,

15  voice-synthesized computer modules, optical scanners, talking

16  software, braille printers, environmental control devices for

17  use by a person with quadriplegia, motor devices that enable

18  persons with disabilities to enter, operate, and exit a

19  vehicle, and vehicle adaptive transportation aids, devices

20  that enable persons with severe speech disabilities to in

21  effect speak, personal transfer systems, and specialty beds,

22  including a demonstrator, that a consumer purchases or accepts

23  transfer of in this state for use by a person with a

24  disability.

25         (4)  "Assistive technology device dealer" means a

26  business entity that is primarily engaged in the selling or

27  leasing of assistive technology devices. As used in this

28  subsection, the term "primarily" means no less than 30 percent

29  of the business entity's gross sales in the previous fiscal

30  year.

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    Florida Senate - 2000                                  SB 2514
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  1         Section 4.  Section 427.803, Florida Statutes, is

  2  amended to read:

  3         427.803  Duty of manufacturer and an assistive

  4  technology device dealer and a manufacturer to conform an

  5  assistive technology device to the warranty.--

  6         (1)  A manufacturer who sells a new assistive

  7  technology device to a consumer, either directly or through an

  8  assistive technology device dealer, shall furnish the consumer

  9  with an express warranty for the assistive technology device.

10  The duration of the express warranty must be at least 1 year

11  after first delivery of the assistive technology device to the

12  consumer. In the absence of an express warranty from the

13  manufacturer, the manufacturer is considered to have expressly

14  warranted to the consumer of an assistive technology device

15  that, for a period of 1 year after the date of first delivery

16  to the consumer, the assistive technology device will be free

17  from any condition or defect that substantially impairs the

18  value of the assistive technology device to the consumer.

19         (2)  If an assistive technology device does not conform

20  to the warranty and the consumer first reports the problem to

21  the assistive technology device dealer manufacturer during the

22  Assistive Technology Device Warranty Act rights period, the

23  manufacturer shall make such repairs as are necessary to

24  conform the device to the warranty, irrespective of whether

25  such repairs are made after the expiration of the Assistive

26  Technology Device Warranty Act rights period. Such repairs

27  shall be at no cost to the consumer if reported to the

28  manufacturer or assistive technology device dealer or

29  manufacturer during the Assistive Technology Device Warranty

30  Act rights period. Nothing in this subsection shall be

31  construed to grant an extension of the Assistive Technology

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  1  Device Warranty Act rights period or to expand the time within

  2  which a consumer must file a complaint under this chapter.

  3         (3)  Each manufacturer or assistive technology device

  4  dealer or manufacturer shall provide to its consumers

  5  conspicuous notice of the address and phone number for its

  6  zone, district, or regional office for this state in the

  7  written warranty or owner's manual.  Within 10 days after the

  8  department's written request, an assistive technology dealer

  9  or a manufacturer shall forward to the department a copy of

10  the owner's manual and any written warranty for each make and

11  model of assistive technology device that it sells in this

12  state.

13         (4)  The manufacturer shall provide to the assistive

14  technology device dealer and, At the time of acquisition, the

15  assistive technology device dealer shall provide to the

16  consumer a written statement that explains the consumer's

17  rights under this chapter.  The written statement shall be

18  prepared by the department and shall contain a toll-free

19  number for the department that the consumer can contact to

20  obtain information regarding the consumer's rights and

21  obligations under this chapter or to commence arbitration. The

22  consumer's signed acknowledgment of receipt of materials

23  required under this subsection shall constitute prima facie

24  evidence of compliance by the manufacturer and assistive

25  technology device dealer and manufacturer. The form of the

26  acknowledgments shall be approved by the department, and the

27  assistive technology device dealer shall maintain the

28  consumer's signed acknowledgment for 3 years.

29         (5)  A manufacturer or An assistive technology device

30  dealer or manufacturer shall provide to the consumer, each

31  time the consumer's assistive technology device is returned

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  1  after being examined or repaired under the warranty, a fully

  2  itemized, legible statement of any diagnosis made and all work

  3  performed on the assistive technology device, including, but

  4  not limited to, a general description of the problem reported

  5  by the consumer or an identification of the defect or

  6  condition and, parts involved and labor, the date on which the

  7  assistive technology device was submitted for examination or

  8  repair, and the date when the repair or examination was

  9  completed.

10         Section 5.  Subsection (16) of section 427.8041,

11  Florida Statutes, is amended to read:

12         427.8041  Assistive technology device dealers

13  registration; application; exemption; penalties; adoption of

14  fees and fines; purchase fees.--

15         (16)  A $2 fee shall be collected by the assistive

16  technology device dealer or assistive technology device lessor

17  from the consumer at the consummation of the sale or lease of

18  an assistive technology device. Such fees must be remitted

19  monthly to the Department of Revenue. All fees, less the cost

20  of administration, must be transferred monthly to the

21  Department of Agriculture and Consumer Services for deposit

22  into the General Inspection Trust Fund to carry out the

23  provisions of this section. The Department of Agriculture and

24  Consumer Services may use an amount it determines necessary to

25  purchase expert consultation services to assist in carrying

26  out the provisions of this act.

27         Section 6.  This act shall take effect upon becoming a

28  law.

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  2                          SENATE SUMMARY

  3    Provides warranty and repair rights for consumers of home
      medical equipment and assistive technology devices.
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