Text: H08026 Text: H08028 Text: H08000 - H08099 Text: H Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Amend House File 530 as follows:
1 2 #1. By striking everything after the enacting
1 3 clause and inserting the following:
1 4 "Section 1. NEW SECTION. 216E.1 DEFINITIONS.
1 5 As used in this chapter, unless the context
1 6 otherwise provides:
1 7 1. "Assistive device" means any item, piece of
1 8 equipment, or product system which is purchased, or
1 9 whose transfer is accepted in this state, and which is
1 10 used to increase, maintain, or improve the functional
1 11 capabilities of individuals with disabilities
1 12 concerning a major life activity as defined in section
1 13 225C.46. "Assistive device" does not mean any medical
1 14 device, surgical device, or organ implanted or
1 15 transplanted into or attached directly to an
1 16 individual. "Assistive device" does not mean any
1 17 device for which a certificate of title is issued by
1 18 the state department of transportation but does mean
1 19 any item, piece of equipment, or product system
1 20 otherwise meeting the definition of "assistive device"
1 21 that is incorporated, attached, or included as a
1 22 modification in or to such a certificated device.
1 23 2. "Assistive device dealer" means a person who is
1 24 in the business of selling assistive devices.
1 25 3. "Assistive device lessor" means a person who
1 26 leases assistive devices to consumers, or who holds
1 27 the lessor's rights, under a written lease.
1 28 4. "Collateral costs" means expenses incurred by a
1 29 consumer in connection with the repair of a
1 30 nonconformity, including the cost of shipping, sales
1 31 tax, and of obtaining an alternative assistive device.
1 32 5. "Consumer" means any one of the following:
1 33 a. The purchaser of an assistive device, if the
1 34 assistive device was purchased from an assistive
1 35 device dealer or manufacturer for purposes other than
1 36 resale.
1 37 b. A person to whom the assistive device is
1 38 transferred for purposes other than resale, if the
1 39 transfer occurs before the expiration of an express
1 40 warranty applicable to the assistive device.
1 41 c. A person who may enforce the warranty.
1 42 d. A person who leases an assistive device from an
1 43 assistive device lessor under a written lease.
1 44 6. "Demonstrator" means an assistive device used
1 45 primarily for the purpose of demonstration to the
1 46 public.
1 47 7. "Early termination costs" means any expense or
1 48 obligation that an assistive device lessor incurs as a
1 49 result of both the termination of a written lease
1 50 before the termination date set forth in the lease and
2 1 the return of an assistive device to the manufacturer.
2 2 "Early termination cost" includes a penalty for
2 3 prepayment under a finance arrangement.
2 4 8. "Early termination savings" means any expense
2 5 or obligation that an assistive device lessor avoids
2 6 as a result of both the termination of a written lease
2 7 before the termination date set forth in the lease and
2 8 the return of an assistive device to a manufacturer
2 9 which shall include an interest charge that the
2 10 assistive device lessor would have paid to finance the
2 11 assistive device or, if the assistive device lessor
2 12 does not finance the assistive device, the difference
2 13 between the total payments remaining for the period of
2 14 the lease term remaining after the early termination
2 15 and the present value of those remaining payments at
2 16 the date of the early termination.
2 17 9. "Loaner" means an assistive device, provided
2 18 free of charge to the consumer, for use by the
2 19 consumer, that need not be new or be identical to, or
2 20 have functional capabilities equal to or greater than,
2 21 those of the original assistive device, but that meets
2 22 all of the following conditions:
2 23 a. The loaner is in good working order.
2 24 b. The loaner performs, at a minimum, the most
2 25 essential functions of the original assistive device,
2 26 in light of the disabilities of the consumer.
2 27 c. Any differences between the loaner and the
2 28 original assistive device do not create a threat to
2 29 the consumer's health or safety.
2 30 10. "Manufacturer" means a person who manufactures
2 31 or assembles assistive devices and agents of that
2 32 person, including an importer, a distributor, a
2 33 factory branch, distributor branch, and any warrantors
2 34 of the assistive device, but does not include an
2 35 assistive device dealer or assistive device lessor.
2 36 11. "Nonconformity" means any defect, malfunction,
2 37 or condition which substantially impairs the use,
2 38 value, or safety of an assistive device or any of its
2 39 component parts, but does not include a condition,
2 40 defect, or malfunction that is the result of abuse,
2 41 neglect, or unauthorized modification or alteration of
2 42 the assistive device by the consumer.
2 43 12. "Reasonable attempt to repair" means any of
2 44 the following occurring within the terms of an express
2 45 warranty applicable to a new assistive device or
2 46 within one year after first delivery of the assistive
2 47 device to a consumer, whichever is sooner:
2 48 a. The manufacturer, assistive device lessor, or
2 49 any of the manufacturer's authorized assistive device
2 50 dealers accept return of the new assistive device for
3 1 repair at least two times.
3 2 b. The manufacturer, assistive device lessor, or
3 3 any of the manufacturer's authorized assistive device
3 4 dealers place the assistive device out of service for
3 5 an aggregate of at least thirty cumulative days
3 6 because of warranty nonconformities.
3 7 Sec. 2. NEW SECTION. 216E.2 EXPRESS WARRANTIES.
3 8 1. A manufacturer or assistive device lessor who
3 9 sells or leases an assistive device to a consumer,
3 10 either directly or through an assistive device dealer,
3 11 shall furnish the consumer with an express warranty
3 12 for the assistive device, warranting the assistive
3 13 device to be free of any nonconformity. The duration
3 14 of the express warranty shall be not less than one
3 15 year after first delivery of the assistive device to
3 16 the consumer. If a manufacturer fails to furnish an
3 17 express warranty as required by this section, the
3 18 assistive device shall be covered by an express
3 19 warranty as if the manufacturer had furnished an
3 20 express warranty to the consumer as required by this
3 21 section.
3 22 2. An express warranty does not take effect until
3 23 the consumer takes possession of the new assistive
3 24 device.
3 25 Sec. 3. NEW SECTION. 216E.3 ASSISTIVE DEVICE
3 26 REPLACEMENT OR REFUND.
3 27 1. If an assistive device does not conform to an
3 28 applicable express warranty and the consumer reports
3 29 the nonconformity to the manufacturer, the assistive
3 30 device lessor, or any of the manufacturer's authorized
3 31 assistive device dealers, and makes the assistive
3 32 device available for repair before one year after
3 33 first delivery of the device to the consumer or within
3 34 the period of the express warranty if the warranty is
3 35 longer than one year, a reasonable attempt to repair
3 36 the nonconformity shall be made.
3 37 2. If, after a reasonable attempt to repair, the
3 38 nonconformity is not repaired, the manufacturer shall
3 39 carry out the requirements of either paragraph "a" or
3 40 "b" upon the request of a consumer.
3 41 a. The manufacturer shall provide for a refund by
3 42 doing one of the following:
3 43 (1) If the assistive device was purchased by the
3 44 consumer, accept return of the assistive device and
3 45 refund to the consumer and to any holder of perfected
3 46 security interest in the consumer's assistive device,
3 47 as the holder's interest may appear, the full purchase
3 48 price plus any finance charge paid by the consumer at
3 49 the point of sale and collateral costs, less a
3 50 reasonable allowance for use.
4 1 (2) If the assistive device was leased by the
4 2 consumer, accept return of the assistive device,
4 3 refund to the assistive device lessor and to any
4 4 holder of a perfected security interest in the
4 5 assistive device, as the holder's interest may appear,
4 6 the current value of the written lease and refund to
4 7 the consumer the amount that the consumer paid under
4 8 the written lease plus any collateral costs, less a
4 9 reasonable allowance for use. The manufacturer shall
4 10 have a cause of action against the dealer or lessor
4 11 for reimbursement of any amount that the manufacturer
4 12 pays to a consumer which exceeds the net price
4 13 received by the manufacturer for the assistive device.
4 14 b. The manufacturer shall provide a comparable new
4 15 assistive device or offer a refund to the consumer if
4 16 the consumer does any one of the following:
4 17 (1) Offers to transfer possession of the assistive
4 18 device to the manufacturer. No later than thirty days
4 19 after that offer, the manufacturer shall provide the
4 20 consumer with the comparable new assistive device or a
4 21 refund. When the manufacturer provides the new
4 22 assistive device or refund, the consumer shall return
4 23 the assistive device having the nonconformity to the
4 24 manufacturer, along with any endorsements necessary to
4 25 transfer legal possession to the manufacturer.
4 26 (2) Offers to return the assistive device to the
4 27 manufacturer. No later than thirty days after the
4 28 offer, the manufacturer shall provide a refund to the
4 29 consumer. When the manufacturer provides a refund,
4 30 the consumer shall return the assistive device having
4 31 the nonconformity to the manufacturer.
4 32 (3) Offers to transfer possession of a leased
4 33 assistive device to the manufacturer. No later than
4 34 thirty days after the offer, the manufacturer shall
4 35 provide a refund to the assistive device lessor. When
4 36 the manufacturer provides the refund, the assistive
4 37 device lessor shall provide to the manufacturer any
4 38 endorsements necessary to transfer legal possession to
4 39 the manufacturer.
4 40 3. Under the provisions of this section, the
4 41 current value of the written lease equals the total
4 42 amount for which that lease obligates the consumer
4 43 during the period of the lease remaining after its
4 44 early termination, plus the assistive device lessor's
4 45 early termination costs and the value of the assistive
4 46 device at the lease expiration date if the lease sets
4 47 forth that value, less the assistive device lessor's
4 48 early termination savings.
4 49 4. Under the provisions of this section, a
4 50 reasonable allowance for use shall not exceed the
5 1 amount obtained by multiplying the total amount for
5 2 which the written lease obligates the consumer by a
5 3 fraction, the denominator of which is one thousand
5 4 eight hundred twenty-five and the numerator of which
5 5 is the number of days that the consumer used the
5 6 assistive device before first reporting the
5 7 nonconformity to the manufacturer, assistive device
5 8 lessor, or assistive device dealer.
5 9 5. A person shall not enforce a lease against a
5 10 consumer after the consumer receives a refund.
5 11 Sec. 4. NEW SECTION. 216E.4 MANUFACTURER'S DUTY
5 12 TO PROVIDE REIMBURSEMENT OR A LOANER FOR TEMPORARY
5 13 REPLACEMENT OF ASSISTIVE DEVICES – PENALTIES.
5 14 1. Whenever an assistive device covered by a
5 15 manufacturer's express warranty is tendered by a
5 16 consumer to the dealer from whom the assistive device
5 17 was purchased or exchanged for the repair of any
5 18 defect, malfunction, or nonconformity to which the
5 19 warranty is applicable, the manufacturer shall provide
5 20 the consumer, at the consumer's choice, for the
5 21 duration of the repair period, either a rental
5 22 assistive device reimbursement of up to twenty dollars
5 23 per day, or a loaner, without cost to the consumer, if
5 24 a loaner is reasonably available or obtainable by the
5 25 manufacturer, assistive device lessor, or assistive
5 26 device dealer, if any of the following applies:
5 27 a. The repair period exceeds ten working days,
5 28 including the day on which the device is tendered to
5 29 the manufacturer or an assistive device dealer
5 30 designated by the manufacturer for repairs. If the
5 31 assistive device dealer does not tender the assistive
5 32 device to the manufacturer in a timely enough manner
5 33 for the manufacturer to make the repairs within ten
5 34 days, the manufacturer shall have a cause of action
5 35 against the assistive device dealer for reimbursement
5 36 of any penalties that the manufacturer must pay.
5 37 b. The nonconformity is the same for which the
5 38 assistive device has been tendered to the assistive
5 39 device dealer for repair on at least two previous
5 40 occasions.
5 41 2. The provisions of this section regarding a
5 42 manufacturer's duty shall apply for the period of the
5 43 applicable express warranty, or until the date any
5 44 repair required by the warranty is completed and the
5 45 assistive device is returned to the consumer with the
5 46 nonconformity eliminated, whichever is later, even if
5 47 the assistive device is returned after the end of the
5 48 warranty period.
5 49 Sec. 5. NEW SECTION. 216E.5 NONCONFORMITY
5 50 DISCLOSURE REQUIREMENT.
6 1 An assistive device returned by a consumer or
6 2 assistive device lessor in this state or any other
6 3 state for nonconformity shall not be sold or leased
6 4 again in this state unless full written disclosure of
6 5 the reason for return is made to any prospective buyer
6 6 or lessee by the manufacturer, assistive device
6 7 dealer, or assistive device lessor.
6 8 Sec. 6. NEW SECTION. 216E.6 REMEDIES.
6 9 1. This chapter shall not limit rights or remedies
6 10 available to a consumer under any other law.
6 11 2. Any waiver of rights by a consumer under this
6 12 chapter is void.
6 13 3. In addition to pursuing any other remedy, a
6 14 consumer may bring an action to recover any damages
6 15 caused by a violation of this chapter. The court
6 16 shall award a consumer who prevails in such an action
6 17 no more than three times the amount of any pecuniary
6 18 loss, together with costs and reasonable attorney
6 19 fees, and any equitable relief that the court
6 20 determines is appropriate.
6 21 Sec. 7. NEW SECTION. 216E.7 EXEMPTIONS.
6 22 This chapter does not apply to a hearing aid sold,
6 23 leased, or transferred to a consumer by an audiologist
6 24 licensed under chapter 147, or a hearing aid dealer
6 25 licensed under chapter 154A, if the audiologist or
6 26 dealer provides either an express warranty for the
6 27 hearing aid or provides for service and replacement of
6 28 the hearing aid."
6 29
6 30
6 31
6 32 WITT of Black Hawk
6 33
6 34
6 35
6 36 BODDICKER of Cedar
6 37 HF 530.503 77
6 38 ec/jw/28
Text: H08026 Text: H08028 Text: H08000 - H08099 Text: H Index Bills and Amendments: General Index Bill History: General Index
© 1998 Cornell College and League of Women Voters of Iowa
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