House Bill hb1917

CODING: Words stricken are deletions; words underlined are additions.




    Florida House of Representatives - 2001                HB 1917

        By the Committee on Agriculture & Consumer Affairs and
    Representative Spratt





  1                      A bill to be entitled

  2         An act relating to assistive technology;

  3         amending s. 400.925, F.S.; revising definitions

  4         with respect to home medical equipment;

  5         amending s. 427.802, F.S.; revising definitions

  6         with respect to home medical equipment

  7         providers; amending s. 427.803, F.S.; revising

  8         warranty requirements under the Assistive

  9         Technology Device Warranty Act; providing for

10         express warranties; amending s. 427.804, F.S.;

11         conforming references; deleting investigation

12         and complaint processing requirements of the

13         Department of Agriculture and Consumer

14         Services; repealing s. 427.8041, F.S., relating

15         to regulation requirements with respect to

16         assistive technology device dealers; providing

17         an effective date.

18

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

20

21         Section 1.  Subsection (8) of section 400.925, Florida

22  Statutes, is amended to read:

23         400.925  Definitions.--As used in this part, the term:

24         (8)  "Home medical equipment" includes any product as

25  defined by the Federal Drug Administration's Drugs, Devices

26  and Cosmetics Act, any products reimbursed under the Medicare

27  Part B Durable Medical Equipment benefits, or any products

28  reimbursed under the Florida Medicaid durable medical

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

30  limited to, oxygen and related respiratory equipment. Home

31  medical equipment includes customized wheelchairs and related

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2001                HB 1917

    188-567A-01






  1  seating and positioning, but does not include prosthetics or

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

  3  a licensed health care practitioner. Home medical equipment

  4  includes assistive technology devices, including manual

  5  wheelchairs, motorized wheelchairs, motorized scooters,

  6  voice-synthesized computer modules, optical scanners, talking

  7  software, braille printers, environmental control devices for

  8  use by persons with quadriplegia, motor vehicle adaptive

  9  transportation aids, devices that enable persons with severe

10  speech disabilities to in effect speak, personal transfer

11  systems, and specialty beds, including a demonstrator, that a

12  consumer purchases or accepts transfer of in the sate for use

13  by a person with a disability.

14         Section 2.  Section 427.802, Florida Statutes, is

15  amended to read:

16         427.802  Definitions.--As used in this part:

17         (1)  "Assistive technology devices" means manual

18  wheelchairs, motorized wheelchairs, motorized scooters,

19  voice-synthesized computer modules, optical scanners, talking

20  software, braille printers, environmental control devices for

21  use by a person with quadriplegia, motor vehicle adaptive

22  transportation aids, devices that enable persons with severe

23  speech disabilities to in effect speak, personal transfer

24  systems, and specialty beds, including a demonstrator, that a

25  consumer purchases or accepts transfer of in this state for

26  use by a person with a disability.

27         (2)  "Assistive Technology Device Warranty Act rights

28  period" means the period ending 1 year after first delivery of

29  the assistive technology device to the consumer or the

30  manufacturer's express written warranty, whichever is longer.

31

                                  2

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2001                HB 1917

    188-567A-01






  1         (2)(3)  "Person with a disability" means any person who

  2  has one or more permanent physical or mental limitations that

  3  restrict his or her ability to perform the normal activities

  4  of daily living and impede his or her capacity to live

  5  independently.

  6         (3)(4)  "Assistive technology device dealer" means a

  7  person who is business entity that is primarily engaged in the

  8  business of selling or leasing of assistive technology

  9  devices. As used in this subsection, the term "primarily"

10  means no less than 30 percent of the business entity's gross

11  sales in the previous fiscal year.

12         (4)(5)  "Assistive technology device lessor" means a

13  person who leases an assistive technology device to a

14  consumer, or holds the lessor's rights, under a written lease.

15         (5)(6)  "Collateral costs" means expenses incurred by a

16  consumer in connection with the repair of a nonconformity,

17  including the costs of obtaining an alternative assistive

18  technology device.

19         (6)(7)  "Consumer" means any of the following:

20         (a)  The purchaser of an assistive technology device,

21  if the assistive technology device was purchased from an

22  assistive technology device dealer or manufacturer for

23  purposes other than resale.

24         (b)  A person to whom the assistive technology device

25  is transferred for purposes other than resale, if the transfer

26  occurs before the expiration of an express warranty applicable

27  to the assistive technology device.

28         (c)  A person who may enforce the warranty.

29         (d)  A person who leases an assistive technology device

30  from an assistive technology device lessor under a written

31  lease.

                                  3

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2001                HB 1917

    188-567A-01






  1         (7)(8)  "Demonstrator" means an assistive technology

  2  device used primarily for the purpose of demonstration to the

  3  public.

  4         (9)  "Department" means the Department of Agriculture

  5  and Consumer Services.

  6         (8)(10)  "Early termination cost" means any expense or

  7  obligation that an assistive technology device lessor incurs

  8  as a result of both the termination of a written lease before

  9  the termination date set forth in that lease and the return of

10  an assistive technology device to a manufacturer pursuant to

11  this section.  The term includes a penalty for prepayment

12  under a financial arrangement.

13         (9)(11)  "Early termination saving" means any expense

14  or obligation that an assistive technology device lessor

15  avoids as a result of both the termination of a written lease

16  before the termination date set forth in the lease and the

17  return of an assistive technology device to a manufacturer

18  pursuant to this section.  The term includes an interest

19  charge that the assistive technology device lessor would have

20  paid to finance the assistive technology device or, if the

21  assistive technology device lessor does not finance the

22  assistive technology device, the difference between the total

23  amount for which the lease obligates the consumer during the

24  period of the lease term remaining after the early termination

25  and the present value of that amount at the date of the early

26  termination.

27         (10)(12)  "Manufacturer" means a business entity that

28  manufactures or produces assistive technology devices for sale

29  and agents of that business entity, including an importer, a

30  distributor, a factory branch, a distributor branch, and any

31

                                  4

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2001                HB 1917

    188-567A-01






  1  warrantors of the manufacturer's assistive technology device,

  2  but not including an assistive technology device dealer.

  3         (11)(13)  "Nonconformity" means a condition or defect

  4  of an assistive technology device which substantially impairs

  5  the use, value, or safety of the device and which is covered

  6  by an express warranty applicable to the assistive technology

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

  8  result of abuse, neglect, excessive wear, or unauthorized

  9  modification or alteration of the assistive technology device

10  by a consumer.

11         (12)(14)  "Reasonable attempt to repair" means, within

12  the terms of an express warranty applicable to a new assistive

13  technology device:

14         (a)  A maximum of three efforts by the manufacturer,

15  the assistive technology device lessor, or any of the

16  manufacturer's authorized assistive technology device dealers

17  to repair a nonconformity that is subject to repair under the

18  warranty; or

19         (b)  The passage of at least 30 cumulative days during

20  which the assistive technology device is out of service

21  because of a nonconformity that is covered by the warranty.

22         Section 3.  Section 427.803, Florida Statutes, is

23  amended to read:

24         427.803  Express Duty of manufacturer and an assistive

25  technology device dealer to conform an assistive technology

26  device to the warranty.--

27         (1)  A manufacturer who sells a new assistive

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

29  assistive technology device dealer, shall furnish the consumer

30  with an express warranty for the assistive technology device.

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

                                  5

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2001                HB 1917

    188-567A-01






  1  after first delivery of the assistive technology device to the

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

  3  manufacturer, the manufacturer is considered to have expressly

  4  warranted to the consumer of an assistive technology device

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

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

  7  from any condition or defect that substantially impairs the

  8  value of the assistive technology device to the consumer.

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

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

11  the manufacturer during the Assistive Technology Device

12  Warranty Act rights period, the manufacturer shall make such

13  repairs as are necessary to conform the device to the

14  warranty, irrespective of whether such repairs are made after

15  the expiration of the Assistive Technology Device Warranty Act

16  rights period. Such repairs shall be at no cost to the

17  consumer if reported to the manufacturer or assistive

18  technology device dealer during the Assistive Technology

19  Device Warranty Act rights period. Nothing in this subsection

20  shall be construed to grant an extension of the Assistive

21  Technology Device Warranty Act rights period or to expand the

22  time within which a consumer must file a complaint under this

23  chapter.

24         (3)  Each manufacturer or assistive technology device

25  dealer shall provide to its consumers conspicuous notice of

26  the address and phone number for its zone, district, or

27  regional office for this state in the written warranty or

28  owner's manual.  Within 10 days after the department's written

29  request, a manufacturer shall forward to the department a copy

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

31

                                  6

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2001                HB 1917

    188-567A-01






  1  and model of assistive technology device that it sells in this

  2  state.

  3         (4)  The manufacturer shall provide to the assistive

  4  technology device dealer and, at the time of acquisition, the

  5  assistive technology device dealer shall provide to the

  6  consumer a written statement that explains the consumer's

  7  rights under this chapter.  The written statement shall be

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

  9  number for the department that the consumer can contact to

10  obtain information regarding the consumer's rights and

11  obligations under this chapter or to commence arbitration. The

12  consumer's signed acknowledgment of receipt of materials

13  required under this subsection shall constitute prima facie

14  evidence of compliance by the manufacturer and assistive

15  technology device dealer. The form of the acknowledgments

16  shall be approved by the department, and the assistive

17  technology device dealer shall maintain the consumer's signed

18  acknowledgment for 3 years.

19         (5)  A manufacturer or an assistive technology device

20  dealer shall provide to the consumer, each time the consumer's

21  assistive technology device is returned after being examined

22  or repaired under the warranty, a fully itemized, legible

23  statement of any diagnosis made and all work performed on the

24  assistive technology device, including, but not limited to, a

25  general description of the problem reported by the consumer or

26  an identification of the defect or condition, parts and labor,

27  the date on which the assistive technology device was

28  submitted for examination or repair, and the date when the

29  repair or examination was completed.

30         Section 4.  Section 427.804, Florida Statutes, is

31  amended to read:

                                  7

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2001                HB 1917

    188-567A-01






  1         427.804  Repair of nonconforming assistive technology

  2  devices; refund or replacement of devices after attempt to

  3  repair; sale or lease of returned device; arbitration;

  4  investigation; limitation of rights.--

  5         (1)  If a new assistive technology device does not

  6  conform to an applicable express warranty and the consumer

  7  reports the nonconformity to the manufacturer, the assistive

  8  technology device lessor, or any of the manufacturer's

  9  authorized assistive technology device dealers and makes the

10  assistive technology device available for repair within 1 year

11  after first delivery or return of the assistive technology

12  device to the consumer, the nonconformity must be repaired at

13  no charge to the consumer.

14         (2)  If, after a reasonable attempt to repair, the

15  nonconformity is not repaired, the manufacturer, at the

16  direction of a consumer as defined in s. 427.802(6)(7)(a)-(c),

17  must do one of the following:

18         (a)  Accept return of the assistive technology device

19  and replace the assistive technology device with a comparable

20  new assistive technology device and refund any collateral

21  costs.

22         (b)  Accept return of the assistive technology device

23  and refund to the consumer and to any holder of a perfected

24  security interest in the consumer's assistive technology

25  device, as the interest may appear, the full purchase price

26  plus any finance charge amount paid by the consumer at the

27  point of sale, and collateral costs.

28         (c)  With respect to a consumer as defined in s.

29  427.802(6)(7)(d), accept return of the assistive technology

30  device, refund to the assistive technology device lessor and

31  to any holder of a perfected security interest in the

                                  8

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2001                HB 1917

    188-567A-01






  1  assistive technology device, as the interest may appear, the

  2  current value of the written lease, and refund to the consumer

  3  the amount that the consumer paid under the written lease plus

  4  any collateral costs.

  5         (3)  The current value of the written lease equals the

  6  total amount for which the lease obligates the consumer during

  7  the period of the lease remaining after its early termination

  8  plus the assistive technology device dealer's early

  9  termination costs and the value of the assistive technology

10  device at the lease expiration date if the lease sets forth

11  the value, less the assistive technology device lessor's early

12  termination savings.

13         (4)  To receive a comparable new assistive technology

14  device or a refund due under paragraph (2)(a), a consumer must

15  offer to the manufacturer of the assistive technology device

16  having the nonconformity to transfer possession of the

17  assistive technology device to the manufacturer.  No later

18  than 30 days after the offer, the manufacturer shall provide

19  the consumer with the comparable assistive technology device

20  or refund.  When the manufacturer provides the comparable

21  assistive technology device or refund, the consumer shall

22  return the assistive technology device having the

23  nonconformity to the manufacturer, along with any endorsements

24  necessary to transfer real possession to the manufacturer.

25         (5)  To receive a refund due under paragraph (2)(b), a

26  consumer must offer to return the assistive technology device

27  having the nonconformity to its manufacturer.  No later than

28  30 days after the offer, the manufacturer shall provide the

29  refund to the consumer who paid for, or the provider who

30  billed a third party payor source for, the assistive

31  technology device. When the manufacturer provides the refund,

                                  9

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2001                HB 1917

    188-567A-01






  1  the consumer shall return to the manufacturer the assistive

  2  technology device having the nonconformity.

  3         (6)  To receive a refund due under paragraph (2)(c), an

  4  assistive technology device lessor must offer to transfer

  5  possession of the assistive technology device having the

  6  nonconformity to its manufacturer.  No later than 30 days

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

  8  the assistive technology device lessor.  When the manufacturer

  9  provides the refund, the assistive technology device lessor

10  shall provide to the manufacturer any endorsements necessary

11  to transfer legal possession to the manufacturer.

12         (7)  A person may not enforce the lease against the

13  consumer after the consumer receives a refund due under

14  paragraph (2)(c).

15         (8)  An assistive technology device that is returned by

16  a consumer or assistive technology device lessor in this

17  state, or by a consumer or assistive technology device lessor

18  in another state under a similar law of that state, may not be

19  sold or leased again in this state, unless full disclosure of

20  the reasons for return is made to any prospective buyer or

21  lessee.

22         (9)  Each consumer may submit any dispute arising under

23  this part to the department by completing a complaint form.

24  The department may investigate the complaint on behalf of the

25  consumer if reasonable evidence warrants such an action.

26         (10)  The department shall process consumer complaints

27  pursuant to s. 570.544.

28         (9)(11)  Each consumer may submit any dispute arising

29  under this part to an alternative arbitration mechanism

30  established pursuant to chapter 682. Upon notice by the

31

                                  10

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 2001                HB 1917

    188-567A-01






  1  consumer, all manufacturers must submit to such alternative

  2  arbitration.

  3         (10)(12)  Such alternative arbitration must be

  4  conducted by a professional arbitrator or arbitration firm

  5  appointed under chapter 682 and any applicable rules.  These

  6  procedures must provide for the personal objectivity of the

  7  arbitrators and for the right of each party to present its

  8  case, to be in attendance during any presentation made by the

  9  other party, and to rebut or refute such a presentation.

10         (11)(13)  This part does not limit rights or remedies

11  available to a consumer under any other law.

12         Section 5.  Section 427.8041, Florida Statutes, is

13  repealed.

14         Section 6.  This act shall take effect July 1, 2001.

15

16            *****************************************

17                          HOUSE SUMMARY

18
      Revises provisions of the Assistive Technology Device
19    Warranty Act to revise definitions and warranty
      requirements, to delete investigation and complaint
20    processing requirements of the Department of Agriculture
      and Consumer Services, and to eliminate registration
21    requirement for assistive technology device dealers. See
      bill for details.
22

23

24

25

26

27

28

29

30

31

                                  11

CODING: Words stricken are deletions; words underlined are additions.