Digest of Bills - 1998

CONSUMER AND COMMERCIAL TRANSACTIONS

H.B. 98-1131 Self-sufficiency for persons with disabilities - express warranties for facilitative devices. Requires manufacturers of facilitative devices to furnish consumers of new facilitative devices with an express warranty that extends for at least one year. Defines "facilitative devices" and "facilitative technology". States that a facilitative device shall be covered by a warranty having the same features as an express warranty if the manufacturer or dealer of the device fails to furnish the express warranty.

        Requires any entity that sells or leases facilitative devices in Colorado to designate an authorized servicer for such product. In the event the selling dealer goes out of business, moves, or ceases to be an authorized dealer, if the consumer is dissatisfied with the selling dealer, provides that the consumer may contract the manufacturer or another authorized dealer to facilitate the warranty service required with an alternative warranty service provider agreed upon by the consumer.

        States that any reported nonconformity of a facilitative device that is made available for repair by the consumer shall be repaired by the manufacturer, lessor, selling dealer, or alternative warranty service provider at no charge to the consumer. Requires that such repairs be warranted for a period not less than the original warranty period.

        For purchased facilitative devices, if the nonconformity is not repaired after a reasonable attempt, requires the manufacturer or dealer who originally supplied or modified the facilitative device either to replace the device with one of equal or greater value and refund any collateral costs to the consumer, or to refund the full purchase price plus any finance charge, sales tax, shipping costs, and collateral costs to the consumer. For leased facilitative devices, requires the manufacturer or dealer to accept a return of the facilitative device and to refund the current value of the written lease and the amount paid under the lease to the consumer. States that such remedies are not exclusive.

        Sets forth the procedures a consumer must follow in order to receive a refund or replacement facilitative device, and provides the manufacturer or dealer 30 business days within which to supply the consumer with a replacement or refund. Requires a consumer, upon receipt of a replacement facilitative device or refund, to return the nonconforming facilitative device.

        Prohibits the sale or lease of a returned facilitative device unless full disclosure is made to the prospective consumer concerning the reasons for the return. Specifies that the remedies of the express warranty established by the act are to be in addition to, and not in limitation of, the rights or remedies available to a consumer under any manufacturer's warranty.

        Provides that the conduct of a manufacturer, dealer, or lessor constitutes the crime of theft if he or she delays final repairs with the intention of requiring payment of the cost of such repairs to be made by a publicly funded program of public assistance, medical assistance, or rehabilitation assistance. Requires disputes concerning consumers' rights to be subject to binding arbitration.

        States that a manufacturer must mail written notification to the consumer of any known or discovered inherent defects in a facilitative device that affect the safety, usability, or reliability of that device within 14 days after learning of such defect. Requires a seller to disclose to the consumer, prior to the sale of a facilitative device, whether the facilitative device is new or used and whether any warranty applies. Upon delivery, directs the seller to advise the buyer of any warranty rights and the proper maintenance of the facilitative device.

APPROVED by Governor April 10, 1998
EFFECTIVE July 1, 1998

H.B. 98-1203 Deceptive trade practices - sale of manufactured homes. Makes certain practices in connection with the sale of manufactured homes deceptive trade practices under the "Colorado Consumer Protection Act".

        Requires contracts for the sale of manufactured homes to disclose clearly and conspicuously the date on which the manufactured home will be delivered subject to the possibility of unavoidable delay. Specifies that such date may be subject to preconditions that must occur before the date of home delivery can be determined. Provides that, unless delay in delivery is unavoidable or caused by the buyer, the contract for the manufactured home shall allow the seller to elect to either refund home sale deposits or pay a reasonable buyer living-expense per diem that relates back to the contract delivery date, if the date of delivery is more than 60 days after the contract date of delivery, or the completion of delivery preconditions set forth in the contract, if no delivery date has been set.

        Requires that all home sale deposits be escrowed for the benefit of home purchasers in a separate fiduciary account in a bank or trust company doing business in the state of Colorado or that sellers provide a letter of credit, certificate of deposit issued by a licensed financial institution, or a surety bond issued by an authorized insurer in a form approved by the attorney general and conditioned upon the refund of any home sale deposit received under agreements for the sale of manufactured homes. Specifies that no financial institution or corporate surety shall be required to make any payment to any person claiming under such deposit or bond until a final determination of fraud, defalcation of funds, or conversion has been made by a court of competent jurisdiction or upon a bankruptcy filing by the seller, or upon the failure to refund or pay a reasonable per diem living expense as required in this act.

        Specifies that any such letter of credit, certificate of deposit, surety bond, or other similar surety shall be filed with, and drawn in favor of, the attorney general of the state of Colorado for use of the people of the state of Colorado who are purchasers of manufactured homes and shall be revocable only with the written consent of the attorney general. Specifies that any contract for the sale of a manufactured home shall disclose that the buyer may have no legal right to rescind the contract unless specifically provided by the terms of the contract or for delinquent delivery. Requires sellers to disclose in contracts that the seller has used one of the methods required by this act to ensure that home sale deposits may be refunded.

        Requires contracts to disclose that escrow deposit complaints may be filed with the office of the attorney general or the district attorney for the judicial district where the sale occurs. Also requires contracts to disclose that aggrieved persons may bring a civil action under the "Colorado Consumer Protection Act" to remedy violations of this act.

        Specifies that damages for violations of this act, in addition to interest, costs of the action, and reasonable attorney fees as determined by the court shall be limited to an amount sufficient to refund moneys actually paid for a manufactured home not delivered in accordance with the requirements of this act.

APPROVED by Governor May 22, 1998
EFFECTIVE August 5, 1998
NOTE: This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution; except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.

H.B. 98-1221 Hospitals - transactions effecting the transfer of 50% or more of the assets or control - attorney general review. Declares that hospitals provide a service to the public by making health care services available to communities they serve and further recognizes the need for appropriate regulatory treatment when hospitals propose to sell or otherwise dispose of or transfer assets or control of the hospital.

        Requires parties to a transaction that would result in the sale, transfer, lease, exchange, or other disposition of 50% or more of the assets of a licensed hospital (covered transaction) to provide notice to the attorney general of the state of Colorado in writing no later than 60 days before the covered transaction.

        Mandates the attorney general to review and approve covered transactions that occur between nonprofit hospitals that will result in a material change in the charitable purposes to which the assets have been dedicated to determine if hospital assets continue to be dedicated to charitable purposes and that the directors or trustees of the hospitals have not acted unreasonably or breached their fiduciary duties. Requires the attorney general to hold a public hearing in the service area of the hospital involved in the covered transaction.

        Requires parties to covered transactions that occur between for-profit entities to provide notice to the attorney general.

        Compels the attorney general to review and approve covered transactions that occur between a nonprofit hospital and for-profit entity to ensure that the transaction is in the public interest and results in continuing access to health care for the affected community, that the proceeds are set aside in an amount equal to the fair market value of the hospital assets being transferred, and that no officer of the nonprofit entity benefits from the covered transaction. Requires the attorney general to hold a public hearing in the service area of the hospital involved in the covered transaction. Mandates the nonprofit organization that receives the proceeds of the covered transaction to provide the attorney general an annual report of its use of the proceeds for a period of not less than 5 years after the covered transaction.

        Authorizes the attorney general to challenge any proposed transaction between a nonprofit hospital and for-profit entity through injunction, declaratory order, or otherwise in the district court of the jurisdiction where the nonprofit entity has its principal place of business.

APPROVED by Governor April 30, 1998
EFFECTIVE April 30, 1998

 

Session Laws of Colorado Digest of Bills General Assembly State of Colorado


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