H.F. 556 Section 1. NEW SECTION . 550A.1 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. “Authorized repair provider” means a person who is 4 engaged in the diagnosis, service, maintenance, or repair of a 5 digital electronic product in this state pursuant to an oral 6 or written agreement with the manufacturer of the digital 7 electronic product to provide such services in the name of the 8 manufacturer for a definite or indefinite period of time. 9 2. “Diagnostic and repair information” means any information 10 provided to an authorized repair provider by the manufacturer 11 of a digital electronic product for the purposes of diagnosis, 12 service, maintenance, or repair of the digital electronic 13 product. “Diagnostic and repair information” includes manuals, 14 diagrams, reporting output, service code descriptions, 15 repair technical updates, diagnostic software, service access 16 passwords, updates and corrections to firmware, and any related 17 information or documentation. 18 3. “Digital electronic product” means a part or product 19 containing a microprocessor originally manufactured for 20 distribution and sale in the United States. 21 4. “Fair and reasonable terms” means an equitable purchase 22 price for a part or product that takes into account but is not 23 limited to the following factors: 24 a. The net cost to an authorized repair provider to purchase 25 a similar part or product from a manufacturer, excluding any 26 discounts, rebates, or other incentive programs. 27 b. The cost to a manufacturer to prepare and distribute 28 the part or product, excluding any research and development 29 costs incurred from the design, implementation, upgrade, or 30 alteration of the part or product, but including amortized 31 capital costs for the preparation and distribution of the part 32 or product. 33 c. The purchase price charged by other manufacturers for a 34 similar part or product. 35 -1- LSB 2436YH (4) 87 gh/rn 1/ 6

H.F. 556 5. “Independent repair provider” means a person who is 1 engaged in the diagnosis, service, maintenance, or repair of 2 a digital electronic product in this state not pursuant to a 3 written or oral agreement with the manufacturer of the digital 4 electronic product to provide such services in the name of the 5 manufacturer. 6 6. “Manufacturer” means a person who, in the ordinary course 7 of business, is engaged in the selling or leasing of a digital 8 electronic product to consumers in this state and is engaged in 9 the diagnosis, service, maintenance, or repair of that digital 10 electronic product. 11 7. “Owner” means a person who lawfully acquires a digital 12 electronic product purchased or used in this state. 13 8. “Person” means the same as defined in section 4.1. 14 9. “Service part” means a replacement part for a digital 15 electronic product, either new or used, made available to an 16 authorized repair provider by the manufacturer to repair the 17 digital electronic product. 18 10. “Trade secret” means the same as defined in section 19 550.2. 20 Sec. 2. NEW SECTION . 550A.2 Manufacturer requirements —— 21 prohibitions —— limitations. 22 1. A manufacturer shall do all of the following: 23 a. Make diagnostic and repair information that is provided 24 to an authorized repair provider available to an independent 25 repair provider or owner in the same manner that such 26 information is provided to the authorized repair provider and 27 without any additional charge. 28 b. Make a service part that is provided to an authorized 29 repair provider available for purchase by an independent repair 30 provider or owner upon fair and reasonable terms. However, the 31 manufacturer need not make accessible for purchase any service 32 part no longer available to the manufacturer or the authorized 33 repair provider. 34 c. Make a diagnostic repair tool that incorporates the same 35 -2- LSB 2436YH (4) 87 gh/rn 2/ 6

H.F. 556 diagnostic repair capabilities made available to an authorized 1 repair provider available for purchase by an independent repair 2 provider or owner upon fair and reasonable terms. 3 2. A manufacturer that sells diagnostic and repair 4 information to an independent repair provider or owner in a 5 format that is standardized with other manufacturers shall 6 not require an authorized repair provider to purchase such 7 information in a proprietary format, unless the proprietary 8 format includes information that is not available in a 9 standardized format. 10 3. A manufacturer of a digital electronic product used for 11 the purpose of providing security-related functions shall not 12 exclude diagnostic and repair information that is necessary 13 to reset a security-related electronic function from the 14 information provided to an independent repair provider or 15 owner. If necessary for security purposes, a manufacturer may 16 provide such information through a secure data release system. 17 4. A manufacturer that provides diagnostic and repair 18 information relating to a digital electronic product to a 19 third-party publication or service information system shall 20 be deemed to be in compliance with the requirements of this 21 section with respect to the digital electronic product. 22 5. Nothing in this section shall be construed to do any of 23 the following: 24 a. Require a manufacturer to divulge information entitled to 25 protection as a trade secret. 26 b. Interfere with, contradict, or alter the terms of an 27 agreement executed between a manufacturer and an authorized 28 repair provider. 29 c. Require a manufacturer or authorized repair provider 30 to provide access to nondiagnostic or nonrepair information 31 provided by a manufacturer to an authorized repair provider 32 pursuant to the terms of an agreement executed between the 33 manufacturer and authorized repair provider. 34 Sec. 3. NEW SECTION . 550A.3 Notice of violation —— right to 35 -3- LSB 2436YH (4) 87 gh/rn 3/ 6

H.F. 556 cure —— private right of action —— attorney general intervention. 1 1. An independent repair provider or owner who believes 2 that a manufacturer has violated this chapter shall notify the 3 manufacturer of the alleged violation in writing. Such notice 4 shall include a description of the alleged violation. 5 2. Upon receipt of notice of an alleged violation, a 6 manufacturer shall respond in writing and shall have a right to 7 cure the alleged violation within thirty days of receiving such 8 notice. 9 3. Either party may file an action concerning an alleged 10 violation of this chapter in the district court for the county 11 in which the violation is alleged to have occurred. 12 4. Upon timely application to the court in which an action 13 involving a violation of this chapter is pending, the attorney 14 general may intervene as a party at any time or may be heard at 15 any time. The attorney general’s failure to intervene shall 16 not preclude the attorney general from bringing a separate 17 action. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill requires manufacturers of digital electronic 22 products that are sold or used in Iowa to make available 23 diagnostic and repair information, diagnostic repair tools, and 24 service parts. 25 The bill contains several definitions. The bill includes 26 definitions for “authorized repair provider”, “diagnostic 27 and repair information”, “digital electronic product”, 28 “fair and reasonable terms”, “independent repair provider”, 29 “manufacturer”, “owner”, “person”, “service part”, and “trade 30 secret”. 31 The bill requires a manufacturer to make diagnostic and 32 repair information that is provided to authorized repair 33 providers available to independent repair providers and owners 34 in the same manner and without any additional charge. A 35 -4- LSB 2436YH (4) 87 gh/rn 4/ 6

H.F. 556 manufacturer must make service parts and diagnostic repair 1 tools provided to authorized repair providers available for 2 purchase by independent repair providers or owners upon fair 3 and reasonable terms, as defined in the bill. 4 The bill prohibits a manufacturer that sells diagnostic and 5 repair information in a standardized format from requiring its 6 authorized repair providers to purchase such information in 7 a proprietary format, unless necessary. A manufacturer of a 8 digital electronic product used for security-related functions 9 is prohibited from excluding certain diagnostic and repair 10 information from the information provided to independent repair 11 providers or owners. 12 The bill specifies that a manufacturer that provides 13 diagnostic and repair information to a third-party publication 14 or service information system regarding a digital electronic 15 product is deemed to be in compliance with the bill’s 16 requirements with respect to that product. 17 The bill provides that nothing in the bill shall be construed 18 to require manufacturers to divulge trade secrets, interfere 19 with or alter the terms of existing agreements between 20 manufacturers and authorized repair providers, or require 21 manufacturers or authorized repair providers to provide access 22 to nondiagnostic or nonrepair information. 23 The bill provides that an independent repair provider 24 or owner who believes that a manufacturer has violated the 25 bill shall notify the manufacturer of the alleged violation 26 in writing, which must include a description of the alleged 27 violation. A manufacturer must respond to a notice of 28 an alleged violation in writing and may cure such alleged 29 violation within 30 days of receiving the notice. Either party 30 may file an action concerning an alleged violation of the bill 31 in the district court for the county in which the violation is 32 alleged to have occurred. The attorney general may intervene 33 as a party in an action brought pursuant to the bill upon 34 timely application to the court in which the action is pending. 35 -5- LSB 2436YH (4) 87 gh/rn 5/ 6