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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