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 - Dead) 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: TLSB 2436YH (4) 87 gh/rn 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. LSB 2436YH (4) 87 gh/rn
