HB 436: "An Act relating to assistive technology and mobility aids."
00HOUSE BILL NO. 436 01 "An Act relating to assistive technology and mobility aids." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 45.45 is amended by adding new sections to read: 04 Article 8A. Warranties For Assistive Technology and Mobility Aids. 05 Sec. 45.45.600. Express warranty required. A manufacturer who sells an 06 assistive technology or a mobility aid to a consumer, either directly or through a 07 dealer, shall furnish the consumer with an express warranty stating that the assistive 08 technology or mobility aid is free from any nonconformity. The duration of the 09 express warranty shall be not less than one year after first delivery of the assistive 10 technology or mobility aid to a consumer. If a manufacturer fails to furnish an express 11 warranty as required by this section, the assistive technology or mobility aid shall be 12 covered by the express warranty as if the manufacturer had furnished an express 13 warranty to the consumer as required by this section. 14 Sec. 45.45.610. Repairs of nonconformities. If a new assistive technology
01 or mobility aid does not conform to an applicable express warranty and the consumer 02 reports the nonconformity to the manufacturer, the lessor, or any of the manufacturer's 03 authorized dealers and makes the assistive technology or mobility aid available for 04 repair before one year after first delivery of the assistive technology or mobility aid 05 to a consumer, the nonconformity shall be repaired. 06 Sec. 45.45.620. Returns of nonrepairable goods; refunds. If, after a 07 reasonable attempt to repair, the nonconformity reported under AS 45.45.610 is not 08 repaired, the manufacturer shall 09 (1) at the direction of a consumer who has not leased the assistive 10 technology or the mobility aid from a dealer, do one of the following: 11 (A) accept return of the assistive technology or mobility aid and 12 replace the assistive technology or mobility aid with a comparable new 13 assistive technology or mobility aid and, within 30 days, refund any collateral 14 costs; 15 (B) accept return of the assistive technology or mobility aid and, 16 within 30 days, refund to the consumer and to a holder of a perfected security 17 interest in the consumer's assistive technology or mobility aid, as their interest 18 may appear, the full purchase price plus any finance charge, amount paid by 19 the consumer at the point of sale, and collateral costs, less a reasonable 20 allowance for use; a reasonable allowance for use may not exceed the amount 21 obtained by multiplying the full purchase price of the assistive technology or 22 mobility aid by a fraction, the denominator of which is 1,825 and the 23 numerator of which is the number of days that the assistive technology or 24 mobility aid was used before the consumer first reported the nonconformity to 25 the dealer; 26 (2) with respect to a consumer who has leased the assistive technology 27 or mobility aid from a dealer, accept return of the assistive technology or mobility aid, 28 refund to the lessor and to a holder of a perfected security interest in the assistive 29 technology or mobility aid, as their interest may appear, the current value of the 30 written lease, and refund to the consumer the amount that the consumer paid under the 31 written lease plus any collateral costs, less a reasonable allowance for use; in this
01 paragraph, 02 (A) the current value of the written lease equals the total 03 amount for which that lease obligates the consumer during the period of the 04 lease remaining after its early termination, plus the dealer's early termination 05 costs and the value of the assistive technology or mobility aid at the lease 06 expiration date if the lease sets out that value, less the lessor's early 07 termination savings; 08 (B) a reasonable allowance for use may not exceed the amount 09 obtained by multiplying the total amount for which the written lease obligates 10 the consumer by a fraction, the denominator of which is 1,825 and the 11 numerator of which is the number of days that the consumer used the assistive 12 technology or mobility aid before first reporting the nonconformity to the 13 manufacturer, lessor, or dealer. 14 Sec. 45.45.630. Procedures for returns and refunds. (a) To receive a 15 comparable new assistive technology or mobility aid or a refund under 16 AS 45.45.620(1), a consumer shall offer to transfer possession of the assistive 17 technology or mobility aid having the nonconformity to its manufacturer. No later 18 than 30 days after that offer, the manufacturer shall provide the consumer with the 19 comparable new assistive technology or mobility aid or with a refund. When the 20 manufacturer provides the new assistive technology or mobility aid or refund, the 21 consumer shall return the assistive technology or mobility aid having the 22 nonconformity to the manufacturer, along with any endorsements necessary to transfer 23 real possession to the manufacturer. 24 (b) To receive a refund under AS 45.45.620(2), a consumer shall offer to 25 return the assistive technology or mobility aid having the nonconformity to its 26 manufacturer. No later than 30 days after that offer, the manufacturer shall provide 27 the refund to the consumer. When the manufacturer provides the refund, the consumer 28 shall return to the manufacturer the assistive technology or mobility aid having the 29 nonconformity. 30 (c) To receive a refund under AS 45.45.620(2), a lessor shall offer to transfer 31 possession of the assistive technology or mobility aid having the nonconformity to its
01 manufacturer. No later than 30 days after that offer, the manufacturer shall provide the 02 refund to the lessor. When the manufacturer provides the refund, the lessor shall 03 provide to the manufacturer any endorsements necessary to transfer legal possession 04 to the manufacturer. 05 Sec. 45.45.640. Lease unenforceable after refund. A person may not enforce 06 the lease for an assistive technology or a mobility aid against the consumer after the 07 consumer receives a refund under AS 45.45.600 - 45.45.690. 08 Sec. 45.45.650. Limits on sale or lease of returned mobility aids. An 09 assistive technology or mobility aid returned by a consumer or a lessor in this state 10 under AS 45.45.600 - 45.45.690, or by a consumer or lessor in another state under a 11 similar law of that state, may not be sold or leased again in this state unless full 12 disclosure of the reasons for return is made to any prospective buyer or lessee. 13 Sec. 45.45.660. Rights may not be waived. A waiver by a consumer of rights 14 under AS 45.45.600 - 45.45.690 is void. 15 Sec. 45.45.670. No limitation of other rights. AS 45.45.600 - 45.45.690 do 16 not limit rights or remedies available to a consumer under any other law. 17 Sec. 45.45.680. Action for damages authorized. In addition to pursuing 18 another remedy, a consumer may bring an action to recover for damages caused by a 19 violation of AS 45.45.600 - 45.45.690. The court shall award a consumer who prevails 20 in an action under this section twice the amount of any pecuniary loss, together with 21 costs, disbursements, and reasonable attorney fees, and any equitable relief that the 22 court determines is appropriate. 23 Sec. 45.45.690. Definitions. In AS 45.45.600 - 45.45.690, 24 (1) "assistive technology or mobility aid" means any aid, including a 25 motorized or nonassistive technology aid, that a consumer purchases or accepts transfer 26 of in this state, including a demonstrator; in this paragraph, "aid" includes 27 (A) a motorized or nonmotorized wheelchair; 28 (B) a handicapped scooter; 29 (C) an automotive crane; 30 (D) a van or van lift; 31 (E) special hand controls for a motor vehicle;
01 (F) manual technology; 02 (G) computer software; and 03 (H) a hearing aid; 04 (2) "collateral costs" means expenses incurred by a consumer in 05 connection with the repair of a nonconformity including the costs of obtaining an 06 alternative assistive technology or mobility aid; 07 (3) "consumer" means 08 (A) the purchaser of an assistive technology or mobility aid, if 09 the assistive technology or mobility aid was purchased from a dealer or 10 manufacturer for purposes other than resale; 11 (B) a person to whom the assistive technology or mobility aid 12 is transferred for purposes other than resale, if the transfer occurs before the 13 expiration of an express warranty applicable to the assistive technology or 14 mobility aid; 15 (C) a person who may enforce the warranty; or 16 (D) a person who leases an assistive technology or a mobility 17 aid from a lessor under a written lease; 18 (4) "dealer" means a person who is in the business of selling assistive 19 technology or mobility aids; 20 (5) "demonstrator" means an assistive technology or a mobility aid used 21 primarily for the purpose of demonstration to the public; 22 (6) "early termination cost" means any expense or obligation that a 23 lessor incurs as a result of both the termination of a written lease before the 24 termination date set out in that lease and the return of an assistive technology or 25 mobility aid to a manufacturer; "early termination cost" includes a penalty for 26 prepayment under a finance arrangement; 27 (7) "early termination savings" means any expense or obligation that 28 a lessor avoids as a result of both the termination of a written lease before the 29 termination date set out in that lease and the return of an assistive technology or 30 mobility aid to a manufacturer; "early termination savings" includes an interest charge 31 that the lessor would have paid to finance the assistive technology or mobility aid or,
01 if the lessor does not finance the assistive technology or mobility aid, the difference 02 between the total amount for which the lease obligates the consumer during the period 03 of the lease term remaining after the early termination and the present value of that 04 amount at the date of the early termination; 05 (8) "lessor" means a person who leases an assistive technology or 06 mobility aid to a consumer, or who holds the lessor's rights, under a written lease; 07 (9) "manufacturer" means a person who manufactures or assembles 08 assistive technology or mobility aids and agents of that person, including an importer, 09 a distributor, factory branch, distributor branch, and any warrantors of the 10 manufacturer's assistive technology or mobility aids, but does not include a dealer; 11 (10) "nonconformity" means a condition or defect that substantially 12 impairs the use, value, or safety of an assistive technology or mobility aid or a 13 component of the assistive technology or mobility aid, but does not include a condition 14 or defect that is the result of abuse, neglect, or unauthorized modification or alteration 15 of the assistive technology or mobility aid or a component of the assistive technology 16 or mobility aid by a consumer; 17 (11) "reasonable attempt to repair" means either of the following 18 occurring within the term of an express warranty applicable to a new assistive 19 technology or mobility aid or within one year after first delivery of the assistive 20 technology or mobility aid to a consumer, whichever is sooner: 21 (A) the same nonconformity with the warranty is subject to 22 repair by the manufacturer, lessor, or any of the manufacturer's authorized 23 dealers at least four times and the nonconformity continues; 24 (B) the assistive technology or mobility aid is out of service for 25 an aggregate of at least 30 days because of warranty nonconformities. 26 * Sec. 2. APPLICABILITY. This Act applies to sales and leases of assistive technology 27 or mobility aids entered into on or after the effective date of this Act.