H.F. 2442 Section 1. NEW SECTION . 322E.1 Short title. 1 This chapter shall be known and may be cited as the “Iowa 2 Fair Repair for Farm Implements Act” . 3 Sec. 2. NEW SECTION . 322E.2 Definitions. 4 As used in this chapter, unless the context otherwise 5 requires: 6 1. “Authorized repair provider” means a person other than an 7 original farm 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 farm implement. 18 3. a. “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 b. “Embedded software” includes but is not limited to a 24 basic internal operating system, an internal operating system, 25 a machine code, an assembly code, a root code, and a microcode. 26 4. “Fair and reasonable terms” means an equitable price in 27 light of relevant factors, including but not limited to all of 28 the following: 29 a. The net cost to the authorized repair provider for 30 similar information obtained from an original equipment 31 manufacturer, less any discounts, rebates, or other incentive 32 programs. 33 b. The cost to an original farm equipment manufacturer 34 for preparing and distributing the information, excluding 35 -1- LSB 6585YH (1) 91 da/js 1/ 8

H.F. 2442 any research and development costs incurred in designing, 1 implementing, upgrading, or altering digital electronic 2 equipment, but including amortized capital costs for the 3 preparation and distribution of the information. 4 c. The price charged by an original farm equipment 5 manufacturer for similar information. 6 d. The price charged by an original farm equipment 7 manufacturer for similar information prior to the launch of a 8 manufacturer’s internet site. 9 e. The ability of aftermarket technicians or shops to afford 10 the information. 11 f. The means by which the information is distributed. 12 g. The extent to which the information is used, including 13 the number of users, and the frequency, duration, and volume 14 of use. 15 h. Inflation. 16 5. “Farm implement” means any of the following: 17 a. A type of motorized equipment that is designed or 18 adapted and used exclusively for the production of agricultural 19 commodities, including a crop as defined in section 202.1 or 20 livestock as defined in section 717.1. 21 b. Farm machinery and equipment exempt from sales tax as 22 provided in section 423.3, subsection 8, if the farm machinery 23 and equipment is a self-propelled implement of husbandry or is 24 customarily drawn or attached to a self-propelled implement of 25 husbandry. 26 c. A farm tractor, fence-line feeder, or implement of 27 husbandry, as defined in section 321.1. 28 6. “Firmware” means a software program or set of 29 instructions programmed on a hardware device to allow the 30 device to communicate with other computer hardware. 31 7. a. “Independent repair provider” means a person 32 operating a business in this state, if all of the following 33 apply: 34 (1) The business is engaged in the diagnosis, service, 35 -2- LSB 6585YH (1) 91 da/js 2/ 8

H.F. 2442 maintenance, or repair of digital electronic equipment. 1 (2) The business is not affiliated with an original farm 2 equipment manufacturer or the authorized repair provider of a 3 manufacturer. 4 b. “Independent repair provider” does not include an 5 original farm equipment manufacturer engaged in the diagnosis, 6 service, maintenance, or repair of digital electronic equipment 7 that is not affiliated with the manufacturer. 8 8. “Interest holder” means a person who holds a legal 9 interest in digital electronic equipment, including as an 10 owner, lessee, or licensee. 11 9. a. “Motor vehicle” means any self-propelled vehicle 12 subject to registration under chapter 321. 13 b. “Motor vehicle” does not include a farm implement. 14 10. “Motor vehicle dealer” means a person engaged in the 15 business of selling at retail motor vehicles or representing or 16 advertising that the person is engaged or intends to engage in 17 such business in this state as provided in section 322.4. 18 11. “Motor vehicle lessor” means a person engaged in the 19 business of leasing motor vehicles for use by others for 20 compensation as provided in chapter 321F. 21 12. “Original farm equipment manufacturer” or “manufacturer” 22 means a person who, in the ordinary course of business, is 23 engaged in the business of doing all of the following: 24 a. Selling or leasing a new farm implement that includes new 25 digital electronic equipment, including replacement parts of 26 equipment, to any person. 27 b. Diagnosing, servicing, maintaining, or repairing digital 28 electronic equipment that is part of a new farm implement, 29 including parts of such digital electronic equipment. 30 13. a. “Replacement part” means any new or used tangible 31 personal property made available by an original farm equipment 32 manufacturer to an authorized repair provider for purposes of 33 effecting a repair. 34 b. “Replacement part” includes a component of digital 35 -3- LSB 6585YH (1) 91 da/js 3/ 8

H.F. 2442 electronic equipment that performs the same or similar function 1 as the component being replaced and that restores digital 2 electronic equipment to an operational condition or improves 3 the efficiency or capability of digital electronic equipment 4 that is part of a farm implement. 5 14. “Trade secret” means anything tangible or intangible 6 or electronically stored or kept that constitutes, represents, 7 evidences, or records intellectual property, including 8 secret or confidentially held designs, processes, procedures, 9 formulas, inventions, or improvements, or secret or 10 confidentially held scientific, technical, merchandising, 11 production, financial, business, or management information, or 12 any other trade secret as defined in 18 U.S.C. §1839. 13 Sec. 3. NEW SECTION . 322E.3 Requirements. 14 1. An original farm equipment manufacturer of a farm 15 implement that includes digital electronic equipment shall make 16 diagnostic and repair information, including repair technical 17 updates and embedded software updates and corrections, 18 available to any independent repair provider or interest holder 19 of digital electronic equipment manufactured by the original 20 farm equipment manufacturer for no charge or in the same 21 manner as the manufacturer makes such diagnostic and repair 22 information available to authorized repair providers. 23 2. An original farm equipment manufacturer of a farm 24 implement that includes digital electronic equipment that 25 sells any diagnostic and repair information to any independent 26 repair provider or to any interest holder in a format that is 27 standardized with other original farm equipment manufacturers, 28 and on terms and conditions more favorable than the manner 29 and the terms and conditions pursuant to which the authorized 30 repair provider obtains the same diagnostic and repair 31 information, shall not require an authorized repair provider 32 or interest holder to continue purchasing diagnostic and 33 repair information in a proprietary format, unless such 34 proprietary format includes diagnostic and repair information 35 -4- LSB 6585YH (1) 91 da/js 4/ 8

H.F. 2442 or functionality that is not available in such standardized 1 format. 2 3. An original farm equipment manufacturer of a farm 3 implement that includes digital electronic equipment sold 4 or used in this state shall make available for purchase 5 by independent repair providers and interest holders all 6 diagnostic repair tools incorporating the same diagnostic, 7 repair, and remote communications capabilities that the 8 original farm equipment manufacturer makes available to the 9 repair or engineering personnel employed by the original farm 10 equipment manufacturer or to any authorized repair provider. 11 An original farm equipment manufacturer shall offer such tools 12 for sale to any independent repair provider or interest holder 13 upon fair and reasonable terms. An original farm equipment 14 manufacturer that provides diagnostic repair information 15 to aftermarket diagnostic tool manufacturers, diagnostics 16 providers, or service information publications and systems 17 shall not be responsible for the content and functionality of 18 such aftermarket diagnostic tools, diagnostics, or service 19 information systems. 20 4. Digital electronic equipment included in a farm 21 implement sold or used in this state for the purpose of 22 providing security-related functions shall not exclude 23 diagnostic and repair information necessary to reset a 24 security-related electronic function from the information 25 provided to an independent repair provider or an interest 26 holder. Information necessary to reset an immobilizer system 27 or other security-related electronic module shall be obtained 28 by an independent repair provider or interest holder, or 29 through the appropriate secure data release systems of the 30 original farm equipment manufacturer. 31 Sec. 4. NEW SECTION . 322E.4 Applicability. 32 1. This chapter does not require an original farm equipment 33 manufacturer to sell replacement parts if the replacement parts 34 are no longer available to the manufacturer or an authorized 35 -5- LSB 6585YH (1) 91 da/js 5/ 8

H.F. 2442 repair provider of the manufacturer. 1 2. This chapter does not apply to a motor vehicle, or any 2 product or service of a motor vehicle manufacturer, motor 3 vehicle dealer, or motor vehicle lessor. 4 Sec. 5. NEW SECTION . 322E.5 Statutory construction. 5 This chapter shall not be construed to do any of the 6 following: 7 1. Require an original equipment manufacturer to divulge a 8 trade secret. 9 2. Except as provided in section 322E.8, abrogate, 10 interfere with, contradict, or alter the terms of any agreement 11 executed and in effect between an authorized repair provider 12 and an original farm equipment manufacturer, including but not 13 limited to the performance or provision of warranty or recall 14 repair work by an authorized repair provider on behalf of a 15 manufacturer pursuant to such agreement. 16 3. Require an original farm equipment manufacturer or 17 an authorized repair provider to provide an interest holder 18 or independent repair provider access to nondiagnostic 19 and nonrepair information provided by a manufacturer to 20 an authorized repair provider pursuant to the terms of an 21 agreement. 22 Sec. 6. NEW SECTION . 322E.6 Rulemaking authority. 23 1. The attorney general shall adopt rules under chapter 17A 24 and forms as necessary to implement this chapter. 25 2. In prescribing rules and forms under this chapter, the 26 attorney general may cooperate with agencies that perform 27 similar functions in other states with a view to effectuating 28 the policy of this chapter to achieve maximum uniformity in the 29 form and content of certification, regulation, and procedural 30 evaluation of manufacturer-established programs, required 31 recordkeeping, required reporting wherever practicable, and 32 required notices to consumers. 33 Sec. 7. NEW SECTION . 322E.7 Subpoenas. 34 The attorney general may enforce and ensure compliance with 35 -6- LSB 6585YH (1) 91 da/js 6/ 8

H.F. 2442 the provisions of this chapter and rules adopted pursuant to 1 section 322E.6, may issue subpoenas requiring the attendance 2 of witnesses and the production of evidence, and may petition 3 any court having jurisdiction to compel compliance with the 4 subpoenas. 5 Sec. 8. NEW SECTION . 322E.8 Certain provisions in 6 agreements void. 7 1. A provision in an agreement entered into by a consumer 8 that waives, limits, or disclaims the rights set forth in this 9 chapter is void as contrary to public policy. 10 2. A provision in an agreement that waives, avoids, 11 restricts, or limits an original farm equipment manufacturer’s 12 compliance with this chapter shall be void and unenforceable. 13 Sec. 9. NEW SECTION . 322E.9 Unfair or deceptive trade 14 practice. 15 An original farm equipment manufacturer who violates this 16 chapter commits an unfair or deceptive trade practice as 17 provided in section 714.16, subsection 2, paragraph “a” . 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 creates the “Iowa Fair Repair for Farm Implements 22 Act”, which restricts certain practices by an original farm 23 equipment manufacturer of digital electronic equipment that is 24 part of a farm implement such as a tractor subject to repair by 25 the manufacturer, an authorized repair provider affiliated with 26 the manufacturer, an independent repair provider, or a person 27 who holds a legal interest in the equipment. 28 The bill provides that a manufacturer must make certain 29 items available to an independent repair provider or a person 30 holding a legal interest in the digital electronic equipment, 31 including diagnostic and repair information. The manufacturer 32 must also provide diagnostic repair tools to an independent 33 repair provider or a person holding a legal interest in the 34 digital electronic equipment, in the same manner as provided to 35 -7- LSB 6585YH (1) 91 da/js 7/ 8

H.F. 2442 an authorized repair provider. The sales terms must be fair 1 and reasonable as defined in the bill. The bill provides that 2 a manufacturer is not required to provide replacement parts if 3 no longer available to the manufacturer or an authorized repair 4 provider. The bill does not require a manufacturer to divulge 5 a trade secret or abrogate warranty provisions. A provision in 6 an agreement that is entered into by a consumer that waives a 7 right provided in the bill is void. 8 The attorney general is responsible for enforcing the 9 provisions of the bill and is required to adopt rules necessary 10 to implement the bill’s provisions. A violation of the bill 11 by a manufacturer is considered an unfair or deceptive trade 12 practice. The attorney general may bring a civil action 13 against the manufacturer, including by seeking injunctive 14 relief or by asking a court to impose a civil penalty not to 15 exceed $40,000 per violation. 16 -8- LSB 6585YH (1) 91 da/js 8/ 8