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HB 451: "An Act relating to assistive technology devices and mobility aids for physically disabled persons."

00HOUSE BILL NO. 451 01 "An Act relating to assistive technology devices and mobility aids for physically 02 disabled persons." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 45.45 is amended by adding new sections to read: 05 Article 8A. Warranties For Assistive Technology Devices and Mobility Aids. 06  Sec. 45.45.600. Express warranty required. A manufacturer who sells an 07 assistive technology device or a mobility aid to a consumer, either directly or through 08 a dealer, shall furnish the consumer with an express warranty stating that the assistive 09 technology device or mobility aid is free from any nonconformity. The duration of the 10 express warranty shall be not less than one year after first delivery of the assistive 11 technology device or mobility aid to a consumer. If a manufacturer fails to furnish an 12 express warranty as required by this section, the assistive technology device or 13 mobility aid shall be covered by the express warranty as if the manufacturer had 14 furnished an express warranty to the consumer as required by this section.

01  Sec. 45.45.610. Repairs of nonconformities. If a new assistive technology 02 device or mobility aid does not conform to an applicable express warranty and the 03 consumer reports the nonconformity to the manufacturer, the lessor, or any of the 04 manufacturer's authorized dealers and makes the assistive technology device or 05 mobility aid available for repair before one year after first delivery of the assistive 06 technology device or mobility aid to a consumer, the nonconformity shall be repaired. 07  Sec. 45.45.620. Returns of nonrepairable goods; refunds. If, after a 08 reasonable attempt to repair, the nonconformity reported under AS 45.45.610 is not 09 repaired, the manufacturer shall 10  (1) at the direction of a consumer who has not leased the assistive 11 technology device or the mobility aid from a dealer, do one of the following: 12  (A) accept return of the assistive technology device or mobility 13 aid and replace the assistive technology device or mobility aid with a 14 comparable new assistive technology device or mobility aid and, within 30 15 days, refund any collateral costs; 16  (B) accept return of the assistive technology device or mobility 17 aid and, within 30 days, refund to the consumer and to a holder of a perfected 18 security interest in the consumer's assistive technology device or mobility aid, 19 as their interest may appear, the full purchase price plus any finance charge, 20 amount paid by the consumer at the point of sale, and collateral costs, less a 21 reasonable allowance for use; a reasonable allowance for use may not exceed 22 the amount obtained by multiplying the full purchase price of the assistive 23 technology device or mobility aid by a fraction, the denominator of which is 24 1,825 and the numerator of which is the number of days that the assistive 25 technology device or mobility aid was used before the consumer first reported 26 the nonconformity to the dealer; 27  (2) with respect to a consumer who has leased the assistive technology 28 device or mobility aid from a dealer, accept return of the assistive technology device 29 or mobility aid, refund to the lessor and to a holder of a perfected security interest in 30 the assistive technology device or mobility aid, as their interest may appear, the current 31 value of the written lease, and refund to the consumer the amount that the consumer

01 paid under the written lease plus any collateral costs, less a reasonable allowance for 02 use; in this paragraph, 03  (A) the current value of the written lease equals the total 04 amount for which that lease obligates the consumer during the period of the 05 lease remaining after its early termination, plus the dealer's early termination 06 costs and the value of the assistive technology device or mobility aid at the 07 lease expiration date if the lease sets out that value, less the lessor's early 08 termination savings; 09  (B) a reasonable allowance for use may not exceed the amount 10 obtained by multiplying the total amount for which the written lease obligates 11 the consumer by a fraction, the denominator of which is 1,825 and the 12 numerator of which is the number of days that the consumer used the assistive 13 technology device or mobility aid before first reporting the nonconformity to 14 the manufacturer, lessor, or dealer. 15  Sec. 45.45.630. Procedures for returns and refunds. (a) To receive a 16 comparable new assistive technology device or mobility aid or a refund under 17 AS 45.45.620(1), a consumer shall offer to transfer possession of the assistive 18 technology device or mobility aid having the nonconformity to its manufacturer. No 19 later than 30 days after that offer, the manufacturer shall provide the consumer with 20 the comparable new assistive technology device or mobility aid or with a refund. 21 When the manufacturer provides the new assistive technology device or mobility aid 22 or refund, the consumer shall return the assistive technology device or mobility aid 23 having the nonconformity to the manufacturer, along with any endorsements necessary 24 to transfer real possession to the manufacturer. 25  (b) To receive a refund under AS 45.45.620(2), a consumer shall offer to 26 return the assistive technology device or mobility aid having the nonconformity to its 27 manufacturer. No later than 30 days after that offer, the manufacturer shall provide 28 the refund to the consumer. When the manufacturer provides the refund, the consumer 29 shall return to the manufacturer the assistive technology device or mobility aid having 30 the nonconformity. 31  (c) To receive a refund under AS 45.45.620(2), a lessor shall offer to transfer

01 possession of the assistive technology device or mobility aid having the nonconformity 02 to its manufacturer. No later than 30 days after that offer, the manufacturer shall 03 provide the refund to the lessor. When the manufacturer provides the refund, the 04 lessor shall provide to the manufacturer any endorsements necessary to transfer legal 05 possession to the manufacturer. 06  Sec. 45.45.640. Lease unenforceable after refund. A person may not enforce 07 the lease for an assistive technology device or a mobility aid against the consumer 08 after the consumer receives a refund under AS 45.45.600 - 45.45.690. 09  Sec. 45.45.650. Limits on sale or lease of returned equipment. An assistive 10 technology device or mobility aid returned by a consumer or a lessor in this state 11 under AS 45.45.600 - 45.45.690, or by a consumer or lessor in another state under a 12 similar law of that state, may not be sold or leased again in this state unless full 13 disclosure of the reasons for return is made to any prospective buyer or lessee. 14  Sec. 45.45.660. Rights may not be waived. A waiver by a consumer of rights 15 under AS 45.45.600 - 45.45.690 is void. 16  Sec. 45.45.670. No limitation of other rights. AS 45.45.600 - 45.45.690 do 17 not limit rights or remedies available to a consumer under any other law. 18  Sec. 45.45.680. Action for damages authorized. In addition to pursuing 19 another remedy, a consumer may bring an action to recover for damages caused by a 20 violation of AS 45.45.600 - 45.45.690. The court shall award a consumer who prevails 21 in an action under this section twice the amount of any pecuniary loss, together with 22 costs, disbursements, and reasonable attorney fees, and any equitable relief that the 23 court determines is appropriate. 24  Sec. 45.45.690. Definitions. In AS 45.45.600 - 45.45.690, 25  (1) "assistive technology device" means an item, piece of equipment, 26 or product system, whether acquired commercially off the shelf, modified, or 27 customized, that is used or designed to be used to increase, maintain, or improve a 28 functional capability of an individual with disabilities; an assistive technology device 29 system that, as a whole, is within the definition of "assistive technology device," is 30 itself an assistive technology device, and in such case the term also applies to each 31 component product of the assistive technology device system that is itself ordinarily

01 an assistive technology device; to the extent that a device otherwise meets the 02 requirements of this paragraph, "assistive technology device" includes 03  (A) wheelchairs and scooters of any kind, and other aids that 04 enhance the mobility or positioning of an individual, such as motorization, 05 motorized positioning features, and the switches and controls for motorized 06 features; 07  (B) hearing aids, telephone communication devices for the deaf, 08 and other assistive listening devices; 09  (C) computer equipment and reading devices with voice output, 10 optical scanners, talking software, braille printers, and other aids and devices 11 that provide access to text; 12  (D) computer equipment with voice output, artificial larynges, 13 voice amplification devices, and other alternative and augmentative 14 communication devices; 15  (E) voice recognition computer equipment, software and 16 hardware accommodations, switches, and other forms of alternative access to 17 computers; 18  (F) environmental control units; and 19  (G) simple mechanical aids that enhance the functional 20 capabilities of an individual with disabilities; 21  (2) "assistive technology device system" means the final product 22 resulting from a manufacturer customizing, adapting, reconfiguring, refitting, 23 refurbishing, or composing into a system one or more component products, whether 24 or not new, that may be assistive technology devices or standard products of the same 25 or other manufacturer; 26  (3) "collateral costs" means expenses incurred by a consumer in 27 connection with the repair of a nonconformity including the costs of obtaining an 28 alternative assistive technology device or mobility aid; 29  (4) "consumer" means 30  (A) the purchaser of an assistive technology device or mobility 31 aid, if the assistive technology device or mobility aid was purchased from a

01 dealer or manufacturer for purposes other than resale; 02  (B) a person to whom the assistive technology device or 03 mobility aid is transferred for purposes other than resale, if the transfer occurs 04 before the expiration of an express warranty applicable to the assistive 05 technology device or mobility aid; 06  (C) a person who may enforce the warranty; or 07  (D) a person who leases an assistive technology device or a 08 mobility aid from a lessor under a written lease; 09  (5) "dealer" means a person who is in the business of selling assistive 10 technology devices or mobility aids; 11  (6) "demonstrator" means an assistive technology device or a mobility 12 aid used primarily for the purpose of demonstration to the public; 13  (7) "early termination cost" means any expense or obligation that a 14 lessor incurs as a result of both the termination of a written lease before the 15 termination date set out in that lease and the return of an assistive technology device 16 or mobility aid to a manufacturer; "early termination cost" includes a penalty for 17 prepayment under a finance arrangement; 18  (8) "early termination savings" means any expense or obligation that 19 a lessor avoids as a result of both the termination of a written lease before the 20 termination date set out in that lease and the return of an assistive technology device 21 or mobility aid to a manufacturer; "early termination savings" includes an interest 22 charge that the lessor would have paid to finance the assistive technology device or 23 mobility aid or, if the lessor does not finance the assistive technology device or 24 mobility aid, the difference between the total amount for which the lease obligates the 25 consumer during the period of the lease term remaining after the early termination and 26 the present value of that amount at the date of the early termination; 27  (9) "lessor" means a person who leases an assistive technology device 28 or mobility aid to a consumer, or who holds the lessor's rights, under a written lease; 29  (10) "manufacturer" means a person who manufactures or assembles 30 assistive technology devices or mobility aids and agents of that person, including an 31 importer, a distributor, factory branch, distributor branch, and any warrantors of the

01 manufacturer's assistive technology devices or mobility aids, but does not include a 02 dealer; 03  (11) "mobility aid" means equipment or a device, including a 04 demonstrator, designed to assist the mobility of a physically disabled person, that a 05 consumer purchases or accepts transfer of in this state; in this paragraph, "device" 06 includes 07  (A) a motorized or nonmotorized wheelchair; 08  (B) a scooter; 09  (C) an automotive crane; 10  (D) a van lift; and 11  (E) special hand controls for a motor vehicle; 12  (12) "nonconformity" means a condition or defect that substantially 13 impairs the use, value, or safety of an assistive technology device or mobility aid or 14 a component of the assistive technology device or mobility aid, but does not include 15 a condition or defect that is the result of abuse, neglect, or unauthorized modification 16 or alteration of the assistive technology device or mobility aid or a component of the 17 assistive technology device or mobility aid by a consumer; 18  (13) "reasonable attempt to repair" means either of the following 19 occurring within the term of an express warranty applicable to a new assistive 20 technology device or mobility aid or within one year after first delivery of the assistive 21 technology device or mobility aid to a consumer, whichever is sooner: 22  (A) the same nonconformity with the warranty is subject to 23 repair by the manufacturer, lessor, or any of the manufacturer's authorized 24 dealers at least four times and the nonconformity continues; 25  (B) the assistive technology device or mobility aid is out of 26 service for an aggregate of at least 30 days because of warranty 27 nonconformities. 28 * Sec. 2. APPLICABILITY. This Act applies to sales and leases of assistive technology 29 devices or mobility aids entered into on or after the effective date of this Act.