Bill Text: MI HB4673 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Trade: business regulation; agricultural equipment repair act; create. Creates new act.
Spectrum: Partisan Bill (Democrat 37-0)
Status: (Introduced) 2023-10-25 - Referred To Second Reading [HB4673 Detail]
Download: Michigan-2023-HB4673-Introduced.html
HOUSE BILL NO. 4673
A bill to require certain original equipment manufacturers and authorized repair providers of agricultural equipment to make diagnostic, maintenance, and repair parts, tools, and documentation available to independent repair providers and owners of that equipment; and to provide remedies.
the people of the state of michigan enact:
Sec. 1. This act may be cited as the "agricultural equipment repair act".
(a) "Agricultural equipment" means a tractor, trailer, combine, sprayer, tillage implement, baler, or other personal property, including any digital electronic embedded in or attached to the equipment, that is used on a farm or ranch and used for planting, growing, or harvesting agricultural products or used for raising or breeding livestock. Agricultural equipment includes any mechanical system used on a farm or ranch for the conveyance or storage of agriculture or animal products in a raw or unprocessed state, regardless of whether the mechanical system is affixed to real property. Agricultural equipment does not include any of the following:
(i) A self-propelled vehicle designed primarily for the transportation of individuals or property on a street or highway and that is certified by the manufacturer under any applicable federal safety and emission standards and requirements for distribution and sale in the United States.
(ii) An off-highway vehicle.
(iii) A personal watercraft.
(iv) A snowmobile.
(b) "Authorized repair provider" means a person that has an arrangement with an original equipment manufacturer under which the original equipment manufacturer grants to the person a license to use a trade name, service mark, or other proprietary identifier for the purposes of offering diagnosis, maintenance, or repair services for agricultural equipment on behalf of the person or the original equipment manufacturer.
(c) "Documentation" means a manual, diagram, reporting output, service code description, schematic, library of diagnosed issues, software bill of material, or other guidance or information used in effectuating diagnosis, maintenance, or repair services for agricultural equipment.
(d) "Fair and reasonable costs and terms" means any of the following as relates to obtaining a part, tool, or documentation, as applicable:
(i) Costs for parts that are fair to the original equipment manufacturer or authorized repair provider and the independent repair provider or owner and that are agreed to by both parties, considering the promised quality and terms for the parts.
(ii) Subject to subparagraphs (iv) and (v), costs that are equivalent to the lowest actual cost for which an original equipment manufacturer offers a tool or documentation to an authorized repair provider, including, but not limited to, any discount, rebate, or other financial incentive offered to an authorized repair provider.
(iii) Subject to subparagraphs (iv) and (v), terms to which all of the following apply:
(A) The terms are equivalent to the most favorable terms under which an original equipment manufacturer offers a part, tool, or documentation to an authorized repair provider, including, but not limited to, the methods and timeliness of delivery of the part, tool, or documentation.
(B) The terms do not do any of the following:
(I) Impose an obligation on an independent repair provider or owner to use a part, tool, or documentation to diagnose, maintain, or repair agricultural equipment.
(II) Require an independent repair provider or owner to become an authorized repair provider.
(III) Require a part or tool to be registered with, paired with, or approved by an original equipment manufacturer or an authorized repair provider.
(iv) In addition to the costs and term conditions described in subparagraphs (ii) and (iii), the costs and terms for obtaining documentation must not include a fee for making the documentation available to an independent repair provider or owner, unless the documentation is requested in physical form, in which case the fee must be equivalent to the actual cost of preparing and sending the documentation in physical form.
(v) In addition to the costs and term conditions described in subparagraphs (ii) and (iii), the costs and terms for obtaining a tool that is software must not include any of the following:
(A) A fee for making the software available to an independent repair provider or owner.
(B) Any impediment to accessing the software, including, but not limited to, requiring internet access, requiring prior authorization by the original equipment manufacturer for use of the software, or denying a request for the software to be downloaded or delivered via physical storage medium.
(e) "Independent repair provider" means a person operating in this state that is not an authorized repair provider and that is engaged in diagnosis, maintenance, or repair services for agricultural equipment.
(f) "Off-highway vehicle" means a self-propelled vehicle that is designed to travel on wheels or tracks in contact with the ground, designed primarily for use off of highways, and generally and commonly used to transport individuals for recreational purposes. Off-highway vehicle does not include any of the following:
(i) A military vehicle.
(ii) A golf cart.
(iii) A vehicle designed and used to carry a person with a disability.
(iv) A vehicle designed and used specifically for agricultural, logging, or mining purposes.
(g) "Original equipment manufacturer" means a person that manufactures agricultural equipment and sells, leases, or otherwise supplies the equipment to another person.
(h) "Owner" means a person that owns or leases agricultural equipment. Owner does not include an original equipment manufacturer.
(i) "Part" means a component or subcomponent of agricultural equipment that is sold, supplied, or made available by an original equipment manufacturer for the purposes of diagnosing, maintaining, or repairing agricultural equipment.
(j) "Snowmobile" means a self-propelled vehicle primarily designed or altered for travel on snow or ice when supported in part by skis, belts, or cleats and designed primarily for use off of highways. Snowmobile does not include machinery used strictly for the grooming of snowmobile trails or ski slopes.
(k) "Software bill of material" means a formal record containing the details and supply chain relationships of components used to build software.
(l) "Tool" means a software program, hardware implement, or other apparatus used for diagnosing, maintaining, or repairing agricultural equipment, including, but not limited to, software or other mechanisms that provision, program, or pair a new part, calibrate functionality, or perform any other function required to bring the product back to fully functional condition.
(m) "Trade secret" means that term as defined in section 2 of the uniform trade secrets act, 1998 PA 448, MCL 445.1902.
Sec. 5. An original equipment manufacturer or authorized repair provider of agricultural equipment that is sold or used in this state on or after the effective date of this act shall make available to an independent repair provider or owner, on fair and reasonable costs and terms, any part, tool, or documentation needed to diagnose, maintain, or repair the agricultural equipment.
Sec. 7. (1) This act does not require an original equipment manufacturer to do any of the following:
(a) Divulge a trade secret to an independent service provider or owner, except as necessary to provide a part, tool, or documentation on fair and reasonable costs and terms as required under this act.
(b) Provide any part used by the original equipment manufacturer to develop its products, except as required under this act.
(2) This act does not do any of the following:
(a) Alter the terms of an arrangement described in section 3(b) between an authorized repair provider and an original equipment manufacturer, except that a provision of the agreement that limits the original equipment manufacturer's or authorized repair provider's obligation to comply with this act is void and unenforceable.
(b) Authorize a repair to agricultural equipment that permanently deactivates a safety notification system or that is otherwise illegal.
(c) Authorize access to a tool function that enables an independent repair provider or owner to change the settings of agricultural equipment in a manner that brings the equipment permanently out of compliance with an applicable safety or emission law.
(d) Authorize the evasion of an emission or copyright law.
Sec. 9. (1) Whether or not an independent repair provider or owner seeks damages or has an adequate remedy at law, an independent repair provider or owner may bring an action to do either or both of the following:
(a) Obtain a declaratory judgment that an original equipment manufacturer or authorized repair provider has violated section 5.
(b) Enjoin in accordance with the principles of equity an original equipment manufacturer or authorized repair provider that is engaging or is about to engage in a violation of section 5.
(2) An independent repair provider or owner that suffers loss as a result of a violation of section 5 may bring an action to recover actual damages or $2,500.00, whichever is greater, together with reasonable attorney fees.
