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Key: (1) language to be deleted (2) new language

                            CHAPTER 193-H.F.No. 990 
                  An act relating to consumer protection; providing 
                  warranties for new assistive devices; providing 
                  enforcement procedures; proposing coding for new law 
                  in Minnesota Statutes, chapter 325G. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  [325G.203] [DEFINITIONS.] 
           Subdivision 1.  [TERMS.] For purposes of sections 325G.203 
        to 325G.208, the terms in this section have the meanings given 
        them. 
           Subd. 2.  [ASSISTIVE DEVICE.] "Assistive device" is an 
        item, piece of equipment, or product system that is designed and 
        used to increase, maintain, or improve functional capabilities 
        of individuals with disabilities in the areas of seeing, 
        hearing, speaking, walking, breathing, performing manual tasks, 
        learning, caring for oneself, or working.  The term includes, 
        but is not limited to:  manual wheelchairs, motorized 
        wheelchairs, motorized scooters, and other aids that enhance the 
        mobility of an individual; hearing aids, assistive listening 
        devices, and other aids that enhance an individual's ability to 
        hear or communicate; voice-synthesized computer modules, optical 
        scanners, talking software, Braille printers, large print 
        materials, and other devices that enhance an individual's 
        ability to access print or communicate; and other assistive 
        devices such as environmental controls, adaptive transportation 
        aids, communication boards, and modified environments. 
        "Assistive device" does not include a transcutaneous electrical 
        nerve stimulator, neuromuscular electrical stimulator, or 
        dynamic range of motion splint, if the stimulator or splint is 
        already covered by a warranty. 
           Subd. 3.  [ASSISTIVE DEVICE DEALER.] "Assistive device 
        dealer" means a person who is in the business of selling new 
        assistive devices.  
           Subd. 4.  [ASSISTIVE DEVICE LESSOR.] "Assistive device 
        lessor" means a person who leases new assistive devices to 
        consumers, or who holds the lessor's rights, under a written 
        lease.  
           Subd. 5.  [COLLATERAL COSTS.] "Collateral costs" means 
        expenses incurred by a consumer in connection with the repair of 
        a nonconformity, including the cost of sales tax and of 
        obtaining an alternative assistive device.  
           Subd. 6.  [CONSUMER OR AGENCY.] "Consumer" or "agency" 
        means any of the following:  
           (1) the purchaser of an assistive device, if the assistive 
        device was purchased from an assistive device dealer or 
        manufacturer for purposes other than resale; 
           (2) a person to whom the assistive device is transferred 
        for purposes other than resale, if the transfer occurs before 
        the expiration of an express warranty applicable to the 
        assistive device; 
           (3) a person who may enforce the warranty; or 
           (4) a person who leases an assistive device from an 
        assistive device lessor under a written lease.  
           Subd. 7.  [DEMONSTRATOR.] "Demonstrator" means an assistive 
        device used primarily for the purpose of demonstration to the 
        public.  
           Subd. 8.  [EARLY TERMINATION COST.] "Early termination cost"
        means an expense or obligation that an assistive device lessor 
        incurs as a result of both the termination of a written lease 
        before the termination date set forth in that lease and the 
        return of an assistive device to the manufacturer.  The term 
        includes a penalty for prepayment under a finance arrangement.  
           Subd. 9.  [EARLY TERMINATION SAVINGS.] "Early termination 
        savings" means an expense or obligation that an assistive device 
        lessor avoids as a result of both the termination of a written 
        lease before the termination date set forth in that lease and 
        the return of an assistive device to a manufacturer.  The term 
        includes an interest charge that the assistive device lessor 
        would have paid to finance the assistive device or, if the 
        assistive device lessor does not finance the assistive device, 
        the difference between the total period of the lease term 
        remaining after the early termination and the present value of 
        that amount at the date of the early termination.  
           Subd. 10.  [MANUFACTURER.] "Manufacturer" means a person 
        who manufactures or assembles assistive devices and agents of 
        that person, including an importer, a distributor, a factory 
        branch, distributor branch, and a warrantor of the 
        manufacturer's assistive device.  The term does not include an 
        assistive device dealer or lessor. 
           Subd. 11.  [NONCONFORMITY.] "Nonconformity" means a 
        specific condition or generic defect or malfunction, or a defect 
        or condition that substantially impairs the use, value, or 
        safety of an assistive device, but does not include a condition 
        or defect that is the result of abuse or unauthorized 
        modification or alteration of the assistive device by the 
        consumer.  
           Subd. 12.  [REASONABLE ATTEMPT TO REPAIR.] "Reasonable 
        attempt to repair" means any of the following occurring within 
        the term of an express warranty applicable to a new assistive 
        device: 
           (1) the manufacturer, assistive device lessor, or any of 
        the manufacturer's authorized assistive device dealers accepts 
        return of the new assistive device for repair at least two 
        times; or 
           (2) the assistive device is out of service for an aggregate 
        of at least 30 cumulative days because of warranty 
        nonconformities.  
           Sec. 2.  [325G.204] [EXPRESS WARRANTIES.] 
           Subdivision 1.  [REQUIREMENT.] A manufacturer who sells or 
        leases a new assistive device to a consumer, either directly or 
        through an assistive device dealer or lessor, shall furnish the 
        consumer with an express warranty to preserve or maintain the 
        utility or performance of the assistive device.  The duration of 
        the express warranty must not be less than one year after first 
        possession of the assistive device by the consumer.  If a 
        manufacturer fails to furnish an express warranty as required by 
        this section, the assistive device shall be covered by an 
        express warranty as if the manufacturer had furnished an express 
        warranty to the consumer as required by this section.  
           Subd. 2.  [NONCONFORMING DEVICE.] If a new assistive device 
        does not conform to an applicable express warranty and the 
        consumer reports the nonconformity to the manufacturer, the 
        assistive device lessor, or any of the manufacturer's authorized 
        assistive device dealers and makes the assistive device 
        available for repair before one year after first possession of 
        the device by the consumer, the nonconformity must be repaired 
        or replaced.  
           Sec. 3.  [325G.205] [ASSISTIVE DEVICE REPLACEMENT OR 
        REFUND.] 
           Subdivision 1.  [REQUIREMENT.] If, after a reasonable 
        attempt to repair, the nonconformity is not repaired, the 
        manufacturer shall carry out, at the option of the consumer, the 
        requirements under paragraph (a) or (b), whichever is 
        appropriate.  
           (a) To provide for refunds, at the request of the consumer, 
        the manufacturer shall do one of the following:  
           (1) accept return of the assistive device and refund to the 
        consumer and to a holder of a perfected security interest in the 
        consumer's assistive device, as their interest may appear, the 
        full purchase price plus any finance charge, amount paid by the 
        consumer at the point of sale and collateral costs, less a 
        reasonable allowance for use; or 
           (2) accept return of the assistive device, refund to the 
        assistive device lessor and to a holder of a perfected security 
        interest in the assistive device, as their interest may appear, 
        the current value of the written lease and refund to the 
        consumer the amount that the consumer paid under the written 
        lease plus collateral costs, less a reasonable allowance for use.
           (b) To receive a comparable new assistive device, a 
        consumer shall offer to the manufacturer of the assistive device 
        having the nonconformity to transfer possession of that 
        assistive device to that manufacturer.  No later than 30 days 
        after that offer, the manufacturer shall provide the consumer 
        with the comparable new assistive device or a refund.  When the 
        manufacturer provides the new assistive device or refund, the 
        consumer shall return the assistive device having the 
        nonconformity to the manufacturer, along with any endorsements 
        necessary to transfer real possession to the manufacturer. 
           Subd. 2.  [REFUND.] If, after a reasonable attempt to 
        repair, the nonconformity is not repaired, an assistive device 
        lessor shall receive a refund from the manufacturer.  To receive 
        a refund, the assistive device lessor shall offer to transfer 
        possession of a nonconforming assistive device to its 
        manufacturer.  No later than 30 days after that offer, the 
        manufacturer shall provide the refund to the assistive device 
        lessor.  When the manufacturer provides the refund, the 
        assistive device lessor shall provide to the manufacturer any 
        endorsements necessary to transfer legal possession to the 
        manufacturer.  
           Subd. 3.  [CURRENT VALUE OF LEASE.] Under this section, the 
        current value of the written lease equals the total amount for 
        which that lease obligates the consumer during the period of the 
        lease remaining after its early termination, plus the assistive 
        device dealer's early termination costs and the value of the 
        assistive device at the lease expiration date if the lease sets 
        forth that value, less the assistive device lessor's early 
        termination savings.  
           Subd. 4.  [REASONABLE ALLOWANCE.] Under this section, a 
        reasonable allowance for use may not exceed the amount obtained 
        by multiplying the total amount the consumer paid or for which 
        the written lease obligates the consumer by a fraction, the 
        denominator of which is 1,825 and the numerator of which is the 
        number of days that the consumer used the assistive device 
        before first reporting the nonconformity to the manufacturer, 
        assistive device lessor, or assistive device dealer.  
           Subd. 5.  [LIMIT ON ENFORCEMENT OF LEASE.] No person may 
        enforce the lease against the consumer after the consumer 
        receives a refund.  
           Sec. 4.  [325G.206] [NONCONFORMITY DISCLOSURE REQUIREMENT.] 
           No assistive device returned by a consumer or assistive 
        device lessor in this state or another state may be sold or 
        leased in this state unless full disclosure of the reason for 
        return is made to a prospective buyer or lessee.  
           Sec. 5.  [325G.207] [OTHER REMEDIES.] 
           Subdivision 1.  [OTHER RIGHTS AND REMEDIES AVAILABLE.] 
        Sections 325G.203 to 325G.208 do not limit rights or remedies 
        available under any other law.  
           Subd. 2.  [WAIVER OF RIGHTS VOID.] A waiver of rights by a 
        consumer under sections 325G.203 to 325G.208 is void.  
           Subd. 3.  [PRIVATE RIGHT OF ACTION.] In addition to 
        pursuing other remedies, a consumer may bring an action to 
        recover damages caused by a violation of sections 325G.203 to 
        325G.208.  The court shall award a consumer who prevails in the 
        action, twice the amount of any pecuniary loss, together with 
        costs, disbursements, and reasonable attorney fees, and any 
        equitable relief that the court may determine is appropriate. 
           Sec. 6.  [325G.208] [MANUFACTURER'S DUTY TO PROVIDE 
        REIMBURSEMENT FOR TEMPORARY REPLACEMENT OF ASSISTIVE DEVICES; 
        PENALTIES.] 
           Subdivision 1.  [REQUIREMENT.] Whenever an assistive device 
        covered by a manufacturer's express warranty is tendered by a 
        consumer to the dealer from whom it was purchased or exchanged 
        for the repair of a defect, malfunction, or nonconformity to 
        which the warranty is applicable and at least one of the 
        following conditions exists, the manufacturer shall provide 
        directly to the consumer for the duration of the repair period, 
        a replacement assistive device or a rental assistive device 
        reimbursement to pay for the cost incurred by the consumer for 
        renting a replacement assistive device. The applicable 
        conditions are as follows:  
           (1) the repair period exceeds ten working days, including 
        the day on which the device is tendered to the dealer for 
        repair; or 
           (2) the defect, malfunction, or nonconformity is the same 
        for which the assistive device has been tendered to the dealer 
        for repair on at least two previous occasions.  
           Subd. 2.  [DURATION OF DUTY.] This section applies for the 
        period of the manufacturer's express warranty. 
           Presented to the governor May 17, 1995 
           Signed by the governor May 19, 1995, 2:34 p.m.

Official Publication of the State of Minnesota
Revisor of Statutes