Bill Text: IA HF556 | 2017-2018 | 87th General Assembly | Introduced


Bill Title: A bill for an act relating to the availability of diagnostic and repair information, diagnostic repair tools, and service parts provided by manufacturers of digital electronic products.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced) 2017-03-08 - Introduced, referred to Commerce. H.J. 554. [HF556 Detail]

Download: Iowa-2017-HF556-Introduced.html

House File 556 - Introduced




                                 HOUSE FILE       
                                 BY  JACOBY, MASCHER, and
                                     GAINES

                                      A BILL FOR

  1 An Act relating to the availability of diagnostic and repair
  2    information, diagnostic repair tools, and service parts
  3    provided by manufacturers of digital electronic products.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  NEW SECTION.  550A.1  Definitions.
  1  2    As used in this chapter, unless the context otherwise
  1  3 requires:
  1  4    1.  "Authorized repair provider" means a person who is
  1  5 engaged in the diagnosis, service, maintenance, or repair of a
  1  6 digital electronic product in this state pursuant to an oral
  1  7 or written agreement with the manufacturer of the digital
  1  8 electronic product to provide such services in the name of the
  1  9 manufacturer for a definite or indefinite period of time.
  1 10    2.  "Diagnostic and repair information" means any information
  1 11 provided to an authorized repair provider by the manufacturer
  1 12 of a digital electronic product for the purposes of diagnosis,
  1 13 service, maintenance, or repair of the digital electronic
  1 14 product. "Diagnostic and repair information" includes manuals,
  1 15 diagrams, reporting output, service code descriptions,
  1 16 repair technical updates, diagnostic software, service access
  1 17 passwords, updates and corrections to firmware, and any related
  1 18 information or documentation.
  1 19    3.  "Digital electronic product" means a part or product
  1 20 containing a microprocessor originally manufactured for
  1 21 distribution and sale in the United States.
  1 22    4.  "Fair and reasonable terms" means an equitable purchase
  1 23 price for a part or product that takes into account but is not
  1 24 limited to the following factors:
  1 25    a.  The net cost to an authorized repair provider to purchase
  1 26 a similar part or product from a manufacturer, excluding any
  1 27 discounts, rebates, or other incentive programs.
  1 28    b.  The cost to a manufacturer to prepare and distribute
  1 29 the part or product, excluding any research and development
  1 30 costs incurred from the design, implementation, upgrade, or
  1 31 alteration of the part or product, but including amortized
  1 32 capital costs for the preparation and distribution of the part
  1 33 or product.
  1 34    c.  The purchase price charged by other manufacturers for a
  1 35 similar part or product.
  2  1    5.  "Independent repair provider" means a person who is
  2  2 engaged in the diagnosis, service, maintenance, or  repair of
  2  3 a digital electronic product in this state not pursuant to a
  2  4 written or oral agreement with the manufacturer of the digital
  2  5 electronic product to provide such services in the name of the
  2  6 manufacturer.
  2  7    6.  "Manufacturer" means a person who, in the ordinary course
  2  8 of business, is engaged in the selling or leasing of a digital
  2  9 electronic product to consumers in this state and is engaged in
  2 10 the diagnosis, service, maintenance, or repair of that digital
  2 11 electronic product.
  2 12    7.  "Owner" means a person who lawfully acquires a digital
  2 13 electronic product purchased or used in this state.
  2 14    8.  "Person" means the same as defined in section 4.1.
  2 15    9.  "Service part" means a replacement part for a digital
  2 16 electronic product, either new or used, made available to an
  2 17 authorized repair provider by the manufacturer to repair the
  2 18 digital electronic product.
  2 19    10.  "Trade secret" means the same as defined in section
  2 20 550.2.
  2 21    Sec. 2.  NEW SECTION.  550A.2  Manufacturer requirements ==
  2 22 prohibitions == limitations.
  2 23    1.  A manufacturer shall do all of the following:
  2 24    a.  Make diagnostic and repair information that is provided
  2 25 to an authorized repair provider available to an independent
  2 26 repair provider or owner in the same manner that such
  2 27 information is provided to the authorized repair provider and
  2 28 without any additional charge.
  2 29    b.  Make a service part that is provided to an authorized
  2 30 repair provider available for purchase by an independent repair
  2 31 provider or owner upon fair and reasonable terms. However, the
  2 32 manufacturer need not make accessible for purchase any service
  2 33 part no longer available to the manufacturer or the authorized
  2 34 repair provider.
  2 35    c.  Make a diagnostic repair tool that incorporates the same
  3  1 diagnostic repair capabilities made available to an authorized
  3  2 repair provider available for purchase by an independent repair
  3  3 provider or owner upon fair and reasonable terms.
  3  4    2.  A manufacturer that sells diagnostic and repair
  3  5 information to an independent repair provider or owner in a
  3  6 format that is standardized with other manufacturers shall
  3  7 not require an authorized repair provider to purchase such
  3  8 information in a proprietary format, unless the proprietary
  3  9 format includes information that is not available in a
  3 10 standardized format.
  3 11    3.  A manufacturer of a digital electronic product used for
  3 12 the purpose of providing security=related functions shall not
  3 13 exclude diagnostic and repair information that is necessary
  3 14 to reset a security=related electronic function from the
  3 15 information provided to an independent repair provider or
  3 16 owner. If necessary for security purposes, a manufacturer may
  3 17 provide such information through a secure data release system.
  3 18    4.  A manufacturer that provides diagnostic and repair
  3 19 information relating to a digital electronic product to a
  3 20 third=party publication or service information system shall
  3 21 be deemed to be in compliance with the requirements of this
  3 22 section with respect to the digital electronic product.
  3 23    5.  Nothing in this section shall be construed to do any of
  3 24 the following:
  3 25    a.  Require a manufacturer to divulge information entitled to
  3 26 protection as a trade secret.
  3 27    b.  Interfere with, contradict, or alter the terms of an
  3 28 agreement executed between a manufacturer and an authorized
  3 29 repair provider.
  3 30    c.  Require a manufacturer or authorized repair provider
  3 31 to provide access to nondiagnostic or nonrepair information
  3 32 provided by a manufacturer to an authorized repair provider
  3 33 pursuant to the terms of an agreement executed between the
  3 34 manufacturer and authorized repair provider.
  3 35    Sec. 3.  NEW SECTION.  550A.3  Notice of violation == right to
  4  1 cure == private right of action == attorney general intervention.
  4  2    1.  An independent repair provider or owner who believes
  4  3 that a manufacturer has violated this chapter shall notify the
  4  4 manufacturer of the alleged violation in writing. Such notice
  4  5 shall include a description of the alleged violation.
  4  6    2.  Upon receipt of notice of an alleged violation, a
  4  7 manufacturer shall respond in writing and shall have a right to
  4  8 cure the alleged violation within thirty days of receiving such
  4  9 notice.
  4 10    3.  Either party may file an action concerning an alleged
  4 11 violation of this chapter in the district court for the county
  4 12 in which the violation is alleged to have occurred.
  4 13    4.  Upon timely application to the court in which an action
  4 14 involving a violation of this chapter is pending, the attorney
  4 15 general may intervene as a party at any time or may be heard at
  4 16 any time. The attorney general's failure to intervene shall
  4 17 not preclude the attorney general from bringing a separate
  4 18 action.
  4 19                           EXPLANATION
  4 20 The inclusion of this explanation does not constitute agreement with
  4 21 the explanation's substance by the members of the general assembly.
  4 22    This bill requires manufacturers of digital electronic
  4 23 products that are sold or used in Iowa to make available
  4 24 diagnostic and repair information, diagnostic repair tools, and
  4 25 service parts.
  4 26    The bill contains several definitions. The bill includes
  4 27 definitions for "authorized repair provider", "diagnostic
  4 28 and repair information", "digital electronic product",
  4 29 "fair and reasonable terms", "independent repair provider",
  4 30 "manufacturer", "owner", "person", "service part", and "trade
  4 31 secret".
  4 32    The bill requires a manufacturer to make diagnostic and
  4 33 repair information that is provided to authorized repair
  4 34 providers available to independent repair providers and owners
  4 35 in the same manner and without any additional charge. A
  5  1 manufacturer must make service parts and diagnostic repair
  5  2 tools provided to authorized repair providers available for
  5  3 purchase by independent repair providers or owners upon fair
  5  4 and reasonable terms, as defined in the bill.
  5  5    The bill prohibits a manufacturer that sells diagnostic and
  5  6 repair information in a standardized format from requiring its
  5  7 authorized repair providers to purchase such information in
  5  8 a proprietary format, unless necessary. A manufacturer of a
  5  9 digital electronic product used for security=related functions
  5 10 is prohibited from excluding certain diagnostic and repair
  5 11 information from the information provided to independent repair
  5 12 providers or owners.
  5 13    The bill specifies that a manufacturer that provides
  5 14 diagnostic and repair information to a third=party publication
  5 15 or service information system regarding a digital electronic
  5 16 product is deemed to be in compliance with the bill's
  5 17 requirements with respect to that product.
  5 18    The bill provides that nothing in the bill shall be construed
  5 19 to require manufacturers to divulge trade secrets, interfere
  5 20 with or alter the terms of existing agreements between
  5 21 manufacturers and authorized repair providers, or require
  5 22 manufacturers or authorized repair providers to provide access
  5 23 to nondiagnostic or nonrepair information.
  5 24    The bill provides that an independent repair provider
  5 25 or owner who believes that a manufacturer has violated the
  5 26 bill shall notify the manufacturer of the alleged violation
  5 27 in writing, which must include a description of the alleged
  5 28 violation. A manufacturer must respond to a notice of
  5 29 an alleged violation in writing and may cure such alleged
  5 30 violation within 30 days of receiving the notice. Either party
  5 31 may file an action concerning an alleged violation of the bill
  5 32 in the district court for the county in which the violation is
  5 33 alleged to have occurred. The attorney general may intervene
  5 34 as a party in an action brought pursuant to the bill upon
  5 35 timely application to the court in which the action is pending.
  6  1 The attorney general's failure to intervene does not preclude
  6  2 the attorney general from bringing a separate action.
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