H.F. 587 Section 1. NEW SECTION . 554G.1 Short title. 1 This chapter shall be known and may be cited as the “Iowa 2 Right to Repair Act” . 3 Sec. 2. NEW SECTION . 554G.2 Definitions. 4 As used in this chapter, unless the context otherwise 5 requires: 6 1. “Authorized repair provider” means a person other than 7 an original equipment manufacturer with whom the manufacturer 8 has entered into an oral or written agreement for a definite 9 or indefinite period, if the manufacturer grants to the 10 person a license to use a trade name, service mark, or related 11 characteristic for the purposes of offering repair services 12 under the name of the manufacturer. 13 2. “Digital electronic equipment” means a product containing 14 an integrated circuit, or a replacement part for use in a 15 product containing an integrated circuit, if manufactured for 16 distribution and sale in the United States, for installation in 17 a home appliance, cell phone, or motor vehicle. 18 3. “Embedded software” means programmable instructions 19 provided on firmware delivered with digital electronic 20 equipment for the purposes of product operation, including 21 all relevant patches and fixes made by the original equipment 22 manufacturer. 23 4. “Fair and reasonable terms” means an equitable price in 24 light of relevant factors, including but not limited to all of 25 the following: 26 a. The net cost to the authorized repair provider for 27 similar information obtained from an original equipment 28 manufacturer, less any discounts, rebates, or other incentive 29 programs. 30 b. The cost to an original equipment manufacturer for 31 preparing and distributing the information, excluding 32 any research and development costs incurred in designing, 33 implementing, upgrading, or altering digital electronic 34 equipment, but including amortized capital costs for the 35 -1- LSB 1898YH (4) 90 es/rn 1/ 7

H.F. 587 preparation and distribution of the information. 1 c. The price charged by an original equipment manufacturer 2 for similar information. 3 d. The price charged by an original equipment manufacturer 4 for similar information prior to the launch of a manufacturer’s 5 internet site. 6 e. The ability of aftermarket technicians or shops to afford 7 the information. 8 f. The means by which the information is distributed. 9 g. The extent to which the information is used, including 10 the number of users, and the frequency, duration, and volume 11 of use. 12 h. Inflation. 13 5. “Firmware” means a software program or set of 14 instructions programmed on a hardware device to allow the 15 device to communicate with other computer hardware. 16 6. “Hand-held electronic communication device” means a mobile 17 telephone or other portable electronic communication device 18 capable of being used to write, send, or view an electronic 19 message. 20 7. “Home appliance” means a machine which assists in 21 household functions such as cooking, cleaning, and food 22 preservation, including major appliances and consumer 23 electronics. 24 8. a. “Independent repair provider” means a person 25 operating a business in this state, if all of the following 26 apply: 27 (1) The business is engaged in the diagnosis, service, 28 maintenance, or repair of digital electronic equipment. 29 (2) The business is not affiliated with an original 30 equipment manufacturer or the authorized repair provider of a 31 manufacturer. 32 b. “Independent repair provider” does not include an 33 original equipment manufacturer engaged in the diagnosis, 34 service, maintenance, or repair of digital electronic equipment 35 -2- LSB 1898YH (4) 90 es/rn 2/ 7

H.F. 587 that is not affiliated with the manufacturer. 1 9. “Interest holder” means a consumer who holds a legal 2 interest in digital electronic equipment, including as an 3 owner, lessee, or licensee. 4 10. “Motor vehicle” means any self-propelled vehicle subject 5 to registration under chapter 321. 6 11. “Original equipment manufacturer” or “manufacturer” means 7 a person who, in the ordinary course of business, is engaged in 8 the business of doing all of the following: 9 a. Selling or leasing new digital electronic equipment, 10 including replacement parts of equipment, to a consumer. 11 b. Diagnosing, servicing, maintaining, or repairing digital 12 electronic equipment, including parts of such equipment. 13 12. a. “Replacement part” means any new or used tangible 14 personal property made available by an original equipment 15 manufacturer to an authorized repair provider for purposes of 16 effecting a repair. 17 b. “Replacement part” includes a component of digital 18 electronic equipment that performs the same or similar function 19 as the component being replaced and that restores digital 20 electronic equipment to an operational condition or improves 21 the efficiency or capability of digital electronic equipment. 22 13. “Trade secret” means anything tangible or intangible 23 or electronically stored or kept which constitutes, 24 represents, evidences, or records intellectual property, 25 including secret or confidentially held designs, processes, 26 procedures, formulas, inventions, or improvements, or secret 27 or confidentially held scientific, technical, merchandising, 28 production, financial, business, or management information, or 29 any other trade secret as defined in 18 U.S.C. §1839. 30 Sec. 3. NEW SECTION . 554G.3 Requirements. 31 1. An original equipment manufacturer of a hand-held 32 electronic communication device, home appliance, or motor 33 vehicle shall make diagnostic and repair information, including 34 repair technical updates and embedded software updates and 35 -3- LSB 1898YH (4) 90 es/rn 3/ 7

H.F. 587 corrections, available to any independent repair provider or 1 interest holder of digital electronic equipment manufactured by 2 an original equipment manufacturer for no charge or in the same 3 manner as the manufacturer makes such diagnostic and repair 4 information available to authorized repair providers after the 5 hand-held electronic communication device, home appliance, or 6 motor vehicle is six years old. 7 2. An original equipment manufacturer that sells any 8 diagnostic and repair information to any independent repair 9 provider or to any interest holder in a format that is 10 standardized with other original equipment manufacturers, and 11 on terms and conditions more favorable than the manner and the 12 terms and conditions pursuant to which the authorized repair 13 provider obtains the same diagnostic and repair information, 14 shall not require an authorized repair provider or interest 15 holder to continue purchasing diagnostic and repair information 16 in a proprietary format, unless such proprietary format 17 includes diagnostic and repair information or functionality 18 that is not available in such standardized format. 19 3. An original equipment manufacturer of digital electronic 20 equipment sold or used in this state shall make available 21 for purchase by independent repair providers and interest 22 holders, after a hand-held electronic communication device, 23 home appliance, or motor vehicle is six years or older, all 24 diagnostic repair tools incorporating the same diagnostic, 25 repair, and remote communications capabilities that the 26 original equipment manufacturer makes available to the 27 repair or engineering personnel employed by the original 28 equipment manufacturer or to any authorized repair provider. 29 An original equipment manufacturer shall offer such tools 30 for sale to any independent repair provider or interest 31 holder upon fair and reasonable terms. An original equipment 32 manufacturer that provides diagnostic repair information 33 to aftermarket diagnostic tool manufacturers, diagnostics 34 providers, or service information publications and systems 35 -4- LSB 1898YH (4) 90 es/rn 4/ 7

H.F. 587 shall not be responsible for the content and functionality of 1 such aftermarket diagnostic tools, diagnostics, or service 2 information systems. 3 4. Digital electronic equipment sold or used in this 4 state for the purpose of providing security-related functions 5 shall not exclude diagnostic and repair information necessary 6 to reset a security-related electronic function from the 7 information provided to an independent repair provider or an 8 interest holder. Information necessary to reset an immobilizer 9 system or other security-related electronic module shall be 10 obtained by an independent repair provider interest holder or 11 through the appropriate secure data release systems of the 12 original equipment manufacturer. 13 Sec. 4. NEW SECTION . 554G.4 Applicability. 14 This chapter does not require an original equipment 15 manufacturer to sell replacement parts if the replacement parts 16 are no longer available to the manufacturer or an authorized 17 repair provider of the manufacturer. 18 Sec. 5. NEW SECTION . 554G.5 Statutory construction. 19 This chapter shall not be construed to do any of the 20 following: 21 1. Require an original equipment manufacturer to divulge a 22 trade secret. 23 2. Abrogate, interfere with, contradict or alter the terms 24 of any agreement executed and in effect between an authorized 25 repair provider and an original equipment manufacturer, 26 including but not limited to the performance or provision of 27 warranty or recall repair work by an authorized repair provider 28 on behalf of a manufacturer pursuant to such agreement. 29 3. Require an original equipment manufacturer or an 30 authorized repair provider to provide an interest holder or 31 independent repair provider access to nondiagnostic and repair 32 information provided by a manufacturer to an authorized repair 33 provider pursuant to the terms of an agreement. 34 Sec. 6. NEW SECTION . 554G.6 Rulemaking authority. 35 -5- LSB 1898YH (4) 90 es/rn 5/ 7

H.F. 587 1. The attorney general shall adopt rules under chapter 17A 1 and forms as necessary to implement this chapter. 2 2. In prescribing rules and forms under this chapter, the 3 attorney general may cooperate with agencies that perform 4 similar functions in other states with a view to effectuating 5 the policy of this chapter to achieve maximum uniformity in the 6 form and content of certification, regulation, and procedural 7 evaluation of manufacturer-established programs, required 8 recordkeeping, required reporting wherever practicable, and 9 required notices to consumers. 10 Sec. 7. NEW SECTION . 554G.7 Subpoenas. 11 The attorney general may enforce and ensure compliance with 12 the provisions of this chapter and rules adopted pursuant to 13 section 554G.6, may issue subpoenas requiring the attendance 14 of witnesses and the production of evidence, and may petition 15 any court having jurisdiction to compel compliance with the 16 subpoenas. 17 Sec. 8. NEW SECTION . 554G.8 Certain provisions in 18 agreements void. 19 1. A provision in an agreement entered into by a consumer 20 that waives, limits, or disclaims the rights set forth in this 21 chapter is void as contrary to public policy. 22 2. A provision in an agreement that waives, voids, 23 restricts, or limits an original equipment manufacturer’s 24 compliance with this chapter shall be void and unenforceable. 25 Sec. 9. NEW SECTION . 554G.9 Unfair or deceptive trade 26 practice. 27 An original equipment manufacturer who violates this chapter 28 commits an unfair or deceptive trade practice as provided in 29 section 714.16, subsection 2, paragraph “a” . 30 EXPLANATION 31 The inclusion of this explanation does not constitute agreement with 32 the explanation’s substance by the members of the general assembly. 33 This bill creates the “Iowa Right to Repair Act” that 34 restricts certain practices by an original equipment 35 -6- LSB 1898YH (4) 90 es/rn 6/ 7

H.F. 587 manufacturer of digital electronic equipment that is part of 1 a hand-held electronic communication device, home appliance, 2 or motor vehicle that is six years old and subject to repair by 3 the manufacturer, an authorized repair provider affiliated with 4 the manufacturer, an independent repair provider, or a person 5 who holds a legal interest in the equipment. 6 The bill provides that a manufacturer must make certain 7 information available to an independent repair provider or 8 a person holding a legal interest in the digital electronic 9 equipment, including diagnostic and repair information. The 10 manufacturer must also provide diagnostic repair tools to 11 an independent repair provider or a person holding a legal 12 interest in the digital electronic equipment, in the same 13 manner as provided to an authorized repair provider. The sales 14 terms must be fair and reasonable as defined in the bill. The 15 bill provides that a manufacturer is not required to provide 16 replacement parts if no longer available to the manufacturer or 17 an authorized repair provider. The bill cannot be applied to 18 require a manufacturer to divulge a trade secret or abrogate 19 warranty provisions. A provision in an agreement that is 20 entered into by a consumer that waives a right provided in the 21 Code chapter is void. 22 The attorney general is responsible for enforcing the 23 provisions of the bill and is required to adopt rules necessary 24 to implement the bill’s provisions. A violation of the bill 25 by a manufacturer is considered an unfair or deceptive trade 26 practice. The attorney general may bring a civil action 27 against the manufacturer, including by seeking injunctive 28 relief, or asking a court to impose a civil penalty not to 29 exceed $40,000 per violation. 30 -7- LSB 1898YH (4) 90 es/rn 7/ 7